Perhaps Indian markets were simply a bit oversold after the big recent meltdown. From Bloomberg:
The S&P BSE Sensex climbed 1.6 percent, the most in more than two weeks, as shares of metals and consumer goods companies rose. It had fallen 0.9 percent on Monday to the lowest level since Nov. 21, after Prime Minister Narendra Modi hinted at raising taxes on income earned from share trading.
The selling probably hasn’t completely ended yet, however:
“The market looked a bit oversold and investors used the opportunity to value-pick stocks,” said Jitendra Panda, chief executive officer at Peerless Securities Ltd., said by phone from Kolkata. “But we can’t say that the worst is behind us. Market will remain volatile till we get more clarity on foreign investors’ plan for the emerging-markets. ”
The iShares MSCI India ETF (BATS:INDA) rose $0.07 (+0.29%) to $26.18 per share in Tuesday morning trading. Year-to-date, the largest ETF tied to Indian equities has declined -4.07%, versus a 10.71% rise in the benchmark S&P 500 index during the same period.