Indian shares extended gains on Tuesday, a day after benchmark equity indices rose 2 percent, boosted by finance minister Nirmala Sitharaman's steps to revive growth. Trade sentiment further improved after the central board of the Reserve Bank of India

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on Monday approved a transfer of Rs 1.76 lakh crore surplus to the government as dividend, the highest ever dividend doled out by the central bank in its history.

Asian stocks also advanced as Sino-US trade tensions eased after US President Donald Trump indicated the possibility of a trade deal with China. Global markets had been roiled at the start of the week by new tariffs from the world’s two largest economies.

The benchmark 30-share S&P BSE Sensex jumped over 152 points, or 0.41 percent, to trade at 37,646 in the initial trade on Tuesday. The broader NSE Nifty50 also gained over 47 points, or 0.43 percent, to 11,105.

The Nifty MidCap index slightly outperformed rising well over half a percent, while the banking gauge, Nifty Bank also rose 0.51 percent. Barring IT and media indexes, all other sectoral gauges traded positive led by PSU banks, capital goods and metal counters.

Metal, financials and auto shares gained in early trade with Tata Steel, Vedanta and Indiabulls Housing Finance leading, each rising between 2 and 3 percent. SBI and L&T also rose by up to 1.5 percent.

IT companies, however, traded under pressure as the rupee strengthened against the US dollar. The home currency opened sharply higher at 71.70 against the greenback.

Additionally, brokerage firm Credit Suisse raised concerns as macroeconomic headwinds in developed markets may lead to more cut in the market's estimate for earnings per share for the IT sector.

Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services and Zee Entertainment shares dipped by up to 1.2 percent.

Meanwhile, gold prices in India surged to a fresh all-time high for the fifth consecutive day surpassing its previous high in the national capital due to a weaker rupee and strong global trend.

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