Reuters Market Eye - The Sensex gains 0.5 percent, while the broader 50-share Nifty rises 0.5 percent on rising hopes for a twin cut in both the repo rate and cash reserve ratio at the RBI rate policy meeting on June 18.
Gains on Tuesday would mark the sixth gaining session in seven.
Traders say weaker-than-expected factory output data has raised hopes for more aggressive RBI action.
Inflation data on Thursday now awaited: a Reuters poll shows WPI likely accelerated 7.60 percent in May from a year ago, the fastest pace this year.
HDFC Bank gains 1 percent, while State Bank of India up 1.6 percent.
Rate-sensitive autos also advance. Tata Motors gains 0.9 percent, while Maruti Suzuki gains 1.2 percent.