Benchmark indices ended in the green on Tuesday after retail inflation dipped below the RBI's upper tolerance level of 6 per cent for the first time in 11 months in November.
BSE Sensex climbed 402.73 points or 0.65 per cent to settle at 62,533.30. During the day, it jumped 437.35 points or 0.70 per cent to 62,567.92.
NSE Nifty advanced 110.85 points or 0.60 per cent to end at 18,608.
From the Sensex pack, IndusInd Bank, Bajaj Finance, Infosys, Tata Consultancy Services, HCL Technologies, Mahindra & Mahindra, Tech Mahindra and Bajaj Finserv were among the biggest winners.
However, Nestle India, Tata Steel, Maruti and Titan were among the major laggards.
Equity markets in Tokyo and Hong Kong ended in positive territory, while Shanghai and Seoul settled lower.
Equity exchanges in Europe were trading in the green in mid-session deals. The US markets ended higher on Monday.
Retail inflation dipped below the RBI's upper tolerance level of 6 per cent for the first time in 11 months in November as softening prices of food items brought relief.
International oil benchmark Brent crude climbed 1.60 per cent to $79.24 per barrel.
Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Monday as they offloaded shares worth ₹138.81 crore, according to exchange data.