The Sensex and Nifty ended the session marginally in the green led by realty, auto, banking and capital goods stocks, despite selling pressure witnessed in consumer durables, FMCG, IT and TECk counters.
The 30-share BSE index Sensex ended up 35.33 points at 27,910.06 and the 50-share NSE index Nifty ended at 8,362.65, up 18.4 points.
Among BSE sectoral indices, realty index was the star-performer and was up 1.05 per cent, followed by banking 0.74 per cent, realty 0.68 per cent and capital goods 0.63 per cent. On the other hand, consumer durables index fell the most by 1.2 per cent, followed by FMCG 0.69 per cent, IT 0.37 per cent and TECk 0.3 per cent.
M&M, Tata Steel, GAIL, Axis Bank and HDFC were the major Sensex gainers, while the major losers were BHEL, ITC, Bharti Airtel, Infosys and Coal India.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 355.30 crore yesterday, according to provisional data from the stock exchanges.
European shares
European stocks rose on Tuesday, with investors in a bullish mood after Wall Street notched up a fourth straight record close and Tokyo's Nikkei hit a seven-year high on talk that a Japanese sales tax increase may be delayed.
European shares were also boosted by positive updates from companies, including Germany's Henkel and Hochtief . The pan-European FTSEurofirst 300 index rose 0.4 per cent.
The Nikkei share average rose 2.1 per cent to its highest close since October 2007 on speculation that Prime Minister Shinzo Abe might postpone a sales tax increase planned for next October and call a snap election.
Elsewhere, MSCI's main index of Asia-Pacific shares excluding Japan fell 0.3 per cent.
Wall Street was led higher by transportation and healthcare shares. Lower oil prices helped airlines and some consumer firms. Both the Dow Jones industrial average and the S&P 500 saw record high closes.