Indian shares had declined in eight of the previous nine sessions on concerns over outflows from emerging markets to the U.S. and ongoing issues over India’s move to ban higher-value currency notes, Reuters reports.
Further supporting the bounce back on Tuesday and allaying fears stemmed from Prime Minister Modi’s comments, Finance Minster Arun Jaitley stated there were no plans to raise long-term capital gains.
There is a “bit of bounce back based on confidence-building measures by the finance minister,” Alok Ranjan, head of research at Way2Wealth Securities, told Reuters.
More aggressive investors who are confident about a bounce back may even look to a leveraged bullish play on Indian markets. The Direxion Daily India Bull 3X Shares (NYSEArca: INDL), which takes the 3x or 300% daily performance of Indian stocks, was up 0.9% Tuesday.
For more information on Indian markets, visit our India category.