Indian shares end higher as heavyweight financials climb

BENGALURU: Indian shares closed higher on Tuesday, driven by strong gains in heavyweight financial stocks, as a pullback in bond yields globally sharpened investors' appetite for riskier assets.

The blue-chip NSE Nifty 50 index closed 0.95% higher at 15,098.4, while the benchmark S&P BSE Sensex was up 1.16% at 51,025.48.

Worries about rising US Treasury yields and outflows of foreign funds had last week tempered a rally in Indian stocks fuelled by positive economic growth data and progress in the country's vaccination campaign.

However, domestic markets rebounded strongly on Tuesday as bond yields retreated in the United States and Europe, sending US stocks futures higher.

The Nifty Bank Index advanced 1.7%, adding to last month's near 14% gain, with top private-sector lender HDFC Bank Ltd climbing 2.8%.

Energy stocks lost about 1.4%, having advanced 1.14% on Monday.

The Business Standard newspaper reported that the government had asked three major oil-marketing companies to not revise fuel prices ahead of polling in some states.

Last week, Reuters reported that the finance ministry was considering slashing excise duties on petrol and diesel to cushion the impact of record-high domestic prices.

Bharat Petroleum Corp was the biggest percentage loser on the Nifty 50, falling 4.5%. Media reports separately said BPCL was likely to sell up to a 4% stake through a block deal on Tuesday.

The Nifty auto index extended losses to a fifth straight session, settling 0.4% lower. Vehicle registrations in India were 13.43% lower in February from a year earlier, the Federation of Automobile Dealers Associations said on Tuesday.