The Sensex and Nifty ended higher by nearly 0.4 per cent as the RBI has decided to cut its key policy rate , or the repo rate, by 25 bps to 6.25 per cent
The benchmark BSE Sensex ended higher by 91.26 points or 0.32 per cent at 28,334.55 and the 50-share NSE index Nifty closed up by 31.05 points or 0.36 per cent at 8,769.15.
Barring capital goods, all other BSE sectoral indices ended in the positive zone. Among them, oil & gas index gained the most by 2.33 per cent, infrastructure 1.51 per cent, PSU 1.44 per cent and realty 0.96 per cent, while capital goods index was down 0.45 per cent.
Top five Sensex gainers were ONGC (+5.21), ONGC ((+4.55%), Tata Steel (+1.89%), Tata Motors (+1.6%) and State Bank of India (+1.59%), while the major losers were Coal India (-2.06%), M&M (-1.92%), L&T (-1.43%), HUL (-1.02%) and Axis Bank (-0.75%).
Global markets
Asian shares wobbled on Tuesday after fading hopes for a reduced Deutsche Bank fine and rising expectations of a US interest rate hike pressured Wall Street.
MSCI's broadest index of Asia-Pacific shares outside Japan was slightly higher in early trading, while Japan's Nikkei stock index gained 0.6 per cent as the dollar rose against the yen.
A report by IFA Global said: "Asian stock markets are trading on a mixed note, with Hang Seng index trading lower by 15 points and Nikkei index is trading higher by 145 points following subdued global cues. US stock markets closed lower. The Dow Jones Industrial Average closed lower by 54 points and Nasdaq index closed lower by 11 points. US equities ended lower despite an uptick in manufacturing PMI for September. European stock markets closed on a positive note with FTSE closing higher by 84 points and CAC closing higher by 5 points. European indices ended marginally higher after final manufacturing PMI for Germany as well as the euro zone came in line with expectations."
The fourth quarter got off to a weak start for US stock investors on Monday, with financials, consumer staples and utilities pulling the S&P 500 lower.
Major indexes have bounced between gains and losses in the past few days, with investors nervous about the outcome of a tight race for the White House ahead of the November 8 election.