Indices log best 1-day gains in five weeks, soar 2.3% as bond yields cool

FPIs buy shares worth Rs 1,345 crore

India’s benchmark indices rallied over 2 per cent on Tuesday, mirroring gains in other global markets, as a sharp decline in the US Treasury yields following soft economic data triggered hopes that the Federal Reserve would take a less aggressive path to monetary tightening.

After climbing to 3.95 per cent last week, the yield on the 10-year US bond slipped to 3.62 per cent on Tuesday following the lower-than-anticipated US manufacturing data. Meanwhile, the Reserve Bank of Australia raised interest rates by a quarter point against the expectation of a half-point increase, sparking speculation that other global central banks too