The Sensex posted slight gains on Wednesday ahead of key inflation data that could help determine whether the RBI cuts interest rates next week.
Larsen & Toubro added 2.45 percent for the day on a Kyodo News report that Mitsubishi Heavy Industries Ltd. may look to buy a stake in unit L&T Shipbuilding though an executive at the energy conglomerate denied any such talks had taken place.
Auto shares were hit by media reports levies would be imposed on diesel vehicle sales, sending Mahindra & Mahindra down 1.84 percent.
The Sensex provisionally rose 0.12 percent to 16,883.4 points.
The Nifty gained 0.11 percent to 5,121.45 points
(Reporting by Manoj Dharra; Editing by Rafael Nam)