Market benchmarks overcame bouts of volatility to close in the green for the second straight session on Tuesday, propped up by robust demand for banking, IT and pharma stocks amid a supportive trend overseas.
However, a depreciating rupee and sustained foreign fund outflows capped the gains, traders said.
The 30-share BSE Sensex rose 126.41 points or 0.21 per cent to settle at 61,294.20. During the day, it hit a high of 61,343.96 and a low of 61,004.04.
The broader NSE Nifty gained 35.10 points or 0.19 per cent to end at 18,232.55.
Axis Bank led the Sensex gainers' chart, spurting 2.25 per cent, followed by Titan, TCS, Tech Mahindra, Sun Pharma, IndusInd Bank, Wipro and Nestle India.
In contrast, Mahindra & Mahindra, Reliance Industries, Hindustan Unilever, Tata Steel, Asian Paints, ITC and NTPC were among the main laggards, shedding up to 1.13 per cent.
"In the absence of major economic triggers, the domestic market shifted its focus towards the Q3 earnings season, which is set to kick off this week. Banks' initial quarterly business results revealed solid business traction supported by robust loan growth.
"IT and banks will take centre stage in the coming days as the trend in the market will be determined by the early signals from sector majors," said Vinod Nair, Head of Research at Geojit Financial Services.
In the broader market, the BSE midcap gauge climbed 0.22 per cent and smallcap index advanced 0.18 per cent.
Among sectoral indices, consumer durables jumped 1.56 per cent, healthcare 0.67 per cent, IT (0.65 per cent), financial services (0.64 per cent), bankex (0.58 per cent) and teck (0.53 per cent).
Commodities, FMCG, auto and metal chalked up losses.
"Markets were slightly volatile and moved in a range with a positive bias as investors resorted to select buying due to absence of cues from the US markets, which were shut on Monday. Surprisingly, European indices and other select Asian peers notched up significant gains and it failed to enthuse local traders in a big way.
"However, the trend may reverse soon as key catalyst like reports of US minutes of the meeting will be released this week," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
Elsewhere in Asia, equity markets in Shanghai and Hong Kong logged gains, while Seoul ended lower.
Equity exchanges in Europe were trading in the green in mid-session deals. Markets in the US were closed on Monday.
International oil benchmark Brent crude inched up 0.34 per cent to USD 86.20 per barrel.
The rupee pared initial gains and settled 8 paise lower at 82.86 (provisional) against the US dollar on Tuesday, weighed by a strong greenback overseas and sustained foreign fund outflows.
Foreign Institutional Investors (FIIs) offloaded shares worth a net Rs 212.57 crore on Monday, according to exchange data.
Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.
