Indian stocks ended higher on Tuesday, with the Sensex and Nifty reversing early losses, as optimism over a potential trade breakthrough with Washington and the reopening of the U.S. government buoyed sentiment. Gains were capped by weakness in financial stocks after Bajaj Finance cut its asset growth forecast, and volatility intensified ahead of the Nifty 50’s weekly derivatives expiry.

The S&P BSE Sensex rose 0.4% to close at 83,871.32, up 335.97 points, while the NSE Nifty 50 advanced 0.47%, or 120.60 points, to settle at 25,694.95.

On the 30-stock Sensex, BEL, Mahindra & Mahindra, Adani Ports, HCL Technologies, Eternal, and Infosys led the advance, rising between 1% and 2.5%.

IT stocks rose 1.2% as hopes of a U.S. government reopening lifted sentiment, with investors betting that a resolution would clear the pah for the Federal Reserve’s rate outlook, bolstering prospects for the export-driven sector.

Market mood was further buoyed by U.S. President Donald Trump’s remarks that a trade deal with India was “close.”

In the broader market, the midcaps rose 0.5% while the smallcaps slipped 0.2%.Vodafone Idea jumped 7.8% after reporting a narrower-than-expected second-quarter loss, helped by more users migrating to higher-margin 4G and 5G plans.Meanwhile, Bajaj Finance slumped 7.4% after cutting its asset growth forecast, citing rising bad loans and intensifying competition in consumer lending.