BENGALURU - Indian shares eked out gains on Tuesday after their worst one-day decline on record, as sentiment improved after the U.S. Federal Reserve pledged to spend as much as needed to steady a financial system shaken by the coronavirus pandemic.
The Nifty rose as much as 5.6% in early trade but pared most of the gains to trade 0.55% higher at 7,650.65 by 0424 GMT. The Sensex was 0.37% higher at 26,077.41.
The Fed on Monday rolled out an array of measures to support the U.S. economy, including purchases of corporate bonds and a plan to expand its asset purchases by as much as needed to stabilize financial markets.
E-Mini futures for the S&P 500 were up 3% on Tuesday and Japan's Nikkei rose 6.2%. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 4.2%.
"The Fed boost has helped our markets but a general weakness still remains because we are in the early stages of assessing the impact of the virus," said Anand James, chief market strategist at Geojit Financial Services in Kochi.
Indian stocks suffered their worst single-day rout in history on Monday and the rupee plunged to a new all-time low as several Indian states imposed curfews to curb the spread of the virus, shutting down businesses and disrupting daily life.
On Tuesday, IT services firm Infosys Ltd jumped over 8% in early trade and the Nifty IT index surged nearly 7%.
Airline stocks, however, were battered as India suspended all domestic flights for an indefinite period to curb the spread of the virus. Shares in the parent of India's largest airline IndiGo tumbled 8.5% and SpiceJet slipped nearly 5%.