MUMBAI — India's stock markets swung between gains and losses on Tuesday amid continued concerns about the spillover impact from dropping equity markets in China.
India's volatility index, often called a fear gauge, was up 5 percent after earlier hitting its highest level since May 2014. The gauge surged 64.4 percent on Monday.
The benchmark BSE Sensex gained 0.2 percent to 25,799.91 at 10:42 a.m. in Mumbai. That marks a recovery after crashing 5.9 percent yesterday, its biggest fall since January 2009, following a rout in global stocks and margin calls.
Coal India Ltd., the world's biggest producer of coal, was among the top gainers. Vedanta Ltd., India's largest copper producer, recovered after plunging to its lowest level since 2008 yesterday. Other gainers included software majors Tata Consultancy Services Ltd. and Infosys Ltd., State Bank of India, the nation's largest lender, and ICICI Bank.
Volatile global markets showed signs of a respite from the recent blood-letting on Tuesday, as bargain hunters helped Asian stocks off three-year lows hit on fears that China's economy was risking a hard landing, with Chinese shares losing another 5 percent.
The MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS jumped 1.7 percent after an initial dip to three-year lows while Japan's Nikkei .N225 index also erased most of its early losses after an initial drop of 4.3 percent.
"There appears to be buyback as many markets look oversold after panicky selling in the last few days. Even the shares that had little business ties with China were sold," said Yukino Yamada, senior strategist at Daiwa Securities.