BENGALURU, March 17 (Reuters) - Indian shares rose in volatile trade on Tuesday, mirroring gains in U.S. stock futures amid hopes of further government support to combat the coronavirus outbreak, which has disrupted businesses and stoked fears of a global recession.
U.S. stock futures rose by their daily limit in Asian trading, driven in part by hopes for big U.S. fiscal spending, after the S&P 500 on Monday suffered its third-largest daily percentage decline on record.
India’s NSE Nifty 50 index - which has fallen 23% this month - rose 1.49% to 9,337 by 0445 GMT, while the benchmark S&P BSE Sensex climbed 1.28% to 31,771.54.
The Reserve Bank of India on Monday announced steps to tackle the impact of the coronavirus outbreak on the economy, but left interest rates unchanged, adding that it stands ready to take any further measures as necessary.
While some analysts said the gains on Tuesday were just a blip and investors were still in panic mode, others sounded hopeful of more government support to reduce the severity of the virus outbreak, which has wreaked havoc on businesses and supply chains.
“There is potential that the RBI might do more, and there is hope,” said Anand James, chief marketing strategist at Geojit Financial Services Ltd in Kochi.
India’s metals and mining stocks, which have sunk 36% this year, rose 3.8% on Monday with Coal India leading gains.
Shares of Yes Bank Ltd surged over 30% after Moody’s upgraded its rating on the company, changing its outlook to “positive”.
The Nifty PSU Bank index, which tracks state-owned banks, was up more than 2%.
India’s volatility index climbed 6.5% to scale a fresh 11-year high.
The Nifty IT index dropped nearly half a percent with Infosys Ltd inching 1.5% lower. (Reporting by Chandini Monnappa in Bengaluru)