Markets recover, Sensex closes 261 pts up

The BSE Sensex provisionally closed 2.07 per cent higher on Tuesday, rebounding from a two-year low in early trade, with ICICI Bank leading the gains after the Reserve Bank of India (RBI) said the No. 2 lender had sufficient liquidity and was well capitalised.

The 30-share main BSE index provisionally gained 261.20 points to 12,856.95, with 19 components gaining. In early trade, the benchmark hit 12,153.55, its lowest in two years.

Shares in ICICI Bank provisionally added 9.3 per cent to 539 rupees, rebounding from a 7.2 per cent fall at the start that had taken them to their lowest in more than two years.

The 50-share NSE index provisionally closed 1.92 per cent up at 3,923.85.