Indian shares end over 1% higher; markets eye Yellen speech

Indian shares ended more than 1% higher on Tuesday on hopes of more foreign fund inflows into the domestic market, as incoming Treasury Secretary Janet Yellen is expected to bolster the case for heavy stimulus in the United States.

The blue-chip NSE Nifty 50 index gained 1.7% to 14,521.15 and the benchmark S&P BSE Sensex climbed 1.7% to 49,398.29. The Nifty and the Sensex had hit record highs last week before sliding in the past two sessions.

"There are increasing expectations of fresh stimulus that will come in the United States based on Janet Yellen's expected statement. Because of that, emerging markets are doing well," said Neeraj Dhawan, director at Quantum Securities in New Delhi.

Janet Yellen, U.S. President-elect Biden's nominee to run the Treasury Department, is also set to tell the Senate Finance Committee the government must "act big" with its next coronavirus relief package.

Foreign investors pumped more than $20 billion into Indian equities last year, according to Refinitiv Eikon data.

In Mumbai trading, Reliance Industries, which has lost about 9% since October, rose 1.6%, while Housing Development Finance Corp gained 3.5%, making them the top boosts to the Nifty 50 index.

Bajaj Finserv and Tata Motors were the top gainers on the Nifty index, adding 6.8% and 5.6%, respectively.

Shares of dairy firm Hatsun Agro Product rose 4.3% after the company posted a surge in December-quarter profit. The country's largest automaker Maruti Suzuki India Ltd jumped as much as 2% on its decision to raise car prices.