India’s BSE Sensex closed about 1.9% firmer at 74,068.45 on Tuesday, reversing part of heavy losses from the day before. The rally followed a five-day postponement of planned US strikes on Iran’s power and energy infrastructure, which President Trump attributed to ‘productive talks’ with Tehran. The move briefly raised hopes of potential de-escalation in the Middle East conflict amid mixed signals from two sides. However, a major drag on the market remains the heavy selling by foreign investors. All sectors posted gains, as traders moved to buy quality stocks at discounted prices. Financials and banks rebounded significantly, up more than 2%, with heavyweight lenders seeing strong buying interest. HDFC Bank rose 2.9% after approving the appointment of external law firms to review the resignation letter of former chairman Atanu Chakraborty. Apart from banks, gains were seen across sectors including capital goods, auto and IT.