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Indian Shares Snap Two-day Losing Streak

Indian shares snapped two days of losses on Tuesday, as investors cheered TCS' Q4 earnings and management commentary as well as preliminary reports hinting at a normal monsoon this year.

Global cues also remained supportive, with Asian markets reversing early losses and European markets rebounding after a sell-off the day before, as investors awaited the results of a two-day policy meeting of the U.S. Federal Reserve to find the probability of any further stimulus announcement.

With political turmoil and disappointing economic data undermining investor risk appetite, traders are hoping that the Fed might give some clues on further quantitative easing measures at the meeting commencing today.

European shares extended gains in mid-day trading, as a series of decent Spanish, Dutch and Italian bond auctions eased concerns over Europe's debt crisis. More significantly, the Netherlands held a successful debt auction despite the collapse of the government over budget cuts a day earlier.

The Dow futures also pointed to a firm start on Wall Street as investors await U.S. data on consumer confidence and new home sales.

The benchmark 30-share Sensex ended the day up 111 points or 0.65 percent at 17,207, while the broader Nifty index rose by 22 points or 0.42 percent to 5,223.

TCS led the gainers in the Sensex pack, climbing almost 13 percent, while Sterlite, Tata Steel, Hindalco, Infosys, Hero MotoCorp, Tata Power and Wipro rose 1-4 percent. State-run oil retailers such as BPCL, HPCL and IOC rallied around 2 percent each after reports suggested the government is considering deregulating diesel prices.

by RTT Staff Writer

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