BSE Sensex closes about 0.4% higher at 77,656

India's BSE Sensex reversed early losses to close about 0.4% up at 77,656 on Tuesday, following a downbeat session the previous day, helped by the recovery in financials and IT stocks.

Lower oil prices also supported sentiment, while Washington’s latest measures to increase economic pressure on Iran were less severe than markets had anticipated.

Investors now looked ahead to Nvidia’s earnings report scheduled for Wednesday and the Fed Chair Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday for fresh clues on the monetary policy outlook.