Rising for the fifth straight session, market benchmark Sensex gained 60 points to end at 33,940 in see-saw trade today, led by gains in metal, IT and consumer durables counters amid mixed Asian cues.
The broader Nifty-50 index was also trading down by 29.55 points or 0.28 per cent at 10,372.70.
Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth Rs 653.65 crore yesterday, while foreign portfolio investors (FPIs) sold equities worth Rs 684.99 crore, provisional data showed.
Most Asian shares rose as investor sentiment improved after China's President Xi Jinping helped ease fears over a US-China trade row.
The rupee's appreciation against the dollar and widening of bets by investors amid optimism ahead of the earnings season also supported the uptrend, they said.
Financials were the top losers with the Nifty PSU Bank index down 2 percent after gaining more than 7 percent in the last four sessions. Other big movers included Adani Ports, Tata Steel, Coal India, L&T, SBI, Bharti Airtel, Yes Bank, ONGC, TCS, Wipro, Power Grid, Infosys, ITC, HUL and RIL - gaining up to 2.75 per cent.
The US Dow Jones Industrial Average ended 0.19 percent higher on Monday. In Europe, France's Paris CAC was up 0.66 per cent, while Frankfurt's DAX gained 1 per cent in their early deals.
The rupee rose 14 paise to 64.88 against the USA dollar in early trade at the forex market on Tuesday. Retail inflation likely eased to a five-month low in March as increases in food prices slowed once again but remained above the central bank's medium-term target, a Reuters poll found.