Mumbai: Indian bourses closed higher on Tuesday, as optimism rose that the Congress-led coalition government would survive an imminent parliamentary confidence vote.
The benchmark Mumbai 30-share Sensex rose 254.16 points to 14,104.2, its fourth straight day of gains. In broader markets, the Nifty moved up gained 81 points to end the day at 4,240 levels.
“There are indications that the government could pull through this crisis,” said Apurva Shah, head of research with brokerage Prabhudas Lilldher.
“If politics takes a back seat from here on, the markets could be rangebound as inflation and monetary policy tightening are real concerns,” he added.
The world’s biggest democracy could go into early elections if the ruling coalition fails to win the vote.
On the bourses, leading the pack of gainers among the Sensex scrips were Reliance Infra, ITC Limited and BHEL. They surged over 6% each. Cipla, Reliance Communication, Wipro, ACC and State Bank of India were some of the other notable gainers.
(with Livemint inputs)