Indian market closed higher on Tuesday, breaking a five-session losing streak after a day of choppy trade that saw huge sell-off in financials for the larger part of the day. Benchmark indexes, the BSE Sensex and the NSE Nifty50, made a sharp recovery in the last hour of trade boosted by government official’s comment that the Reserve Bank of India (RBI) should consider cutting cash reserve ratio (CRR) to augment liquidity.

Share Market Live

NSE

On top of it, LIC chairman talked about an option to increase stake in IL&FS which lifted financial and bank stocks.

The downside still, however, is that market breadth remains in favour of declines with the NSE advance-decline ratio at 1:2. Overall trade sentiment remained affected by Brent crude oil prices surging to a fresh four-year high of above $82/bbl and the rupee remaining in a tight range.

The Sensex and the Nifty recovered to end the session at high point of the day with the 30-share BSE index seeing a recovery of over 588 points from lows to close with a gain of 347 points at 36,652.

The 50-stock broader NSE Index, the Nifty50 gained 185 points from the low of 10,883 to end above 100-day moving average with a gain of 100 points at 11,067.

In the broader markets, Nifty Bank saw a smart recovery of 652 points to close at 25,330 with a gain of 360 points, while Midcap Index recovered to close flat at 17,864.50.

Financials were the major reason for a recovery seen in equity market. Indiabulls Housing gained 17 percent from the low of Rs 786 after reports that the NBFC has rasied Rs 2,200 crore since Friday at the rate of 8.36 percent.

DHFL too recovered 17 percent after breaching Friday’s low of Rs 274.75. Other financial stocks like HDFC, HDFC Bank, ICICI Bank, Kotak Mahindra Bank also moved higher, recovering from the day’s lows to close in the green.

Defensive bets of pharma stocks were higher in trade as well. Nifty stocks of Sun Pharma, Cipla, Lupin and Dr Reddy’s closed with a gain of over 2 percent each.

In the futures market, Nifty Put options of 11,000 saw an addition of 6 lakh shares in the open interest with premium falling 56 percent, while Call option of 11,100 added 3 lakh shares with premium moving 60 percent higher.

Nifty September Futures added over 11 lakh to the open interest positions and closed with a premium of 20 points against a premium of 31 points on Monday.

Asian markets were broadly negative on Tuesday, amid concerns over the ongoing trade spat between the US and China. Mainland China markets closed lower following Monday's public holiday.

The Shanghai composite ended the trading day lower by 0.6 percent at around 2,781 while the Shenzhen composite also slipped by 0.5% to close at about 1,437.

In Australia, the ASX 200 closed largely flat, with the heavily weighted financial sector seeing a loss of 0.7 percent. Commonwealth Bank of Australia shares closed lower by 1 percent, while Westpac Banking Corp's stock slipped by about 1.2 percent.

Japan’s Nikkei225, on the other hand, saw gains of 0.3 percent to close at 23,940, with semiconductor manufacturer Tokyo Electron rising 2.4 percent.

Markets in Hong Kong and South Korea are closed for public holidays.