Shares of Sesa Sterlite Ltd gained as much as 2.5 per cent in trades on Tuesday.

Gains were seen on the counter following a rebound in the iron ore prices overseas.

Chinese iron ore futures bounce back, and were on course for their second-biggest daily gain this year.

Investment bank Morgan Stanley in a note said that regulatory hurdles (for Sesa Sterlite) relating to restarting iron ore mining appear to be reducing.

It expects a ramp-up of key expansion projects in zinc and aluminum divisions, which could improve earnings profile of the company.