Sensex gains; earnings in focus with eyes on RBI policy

The BSE Sensex rose on Tuesday to their highest close in nearly two weeks, led by gains in lenders after the Reserve bank of India (RBI) cut an overnight interest rate on Monday, further unwinding extraordinary measures taken to defend the rupee.

Still, indexes failed to hold onto early gains of more than one per cent as broader sentiment is expected to turn cautious ahead of July-September earnings which are expected to be weighed down by weakening economic growth and the rupee volatility.

The benchmark BSE index closed up 0.44 per cent, or 88.51 points, at 19,983.61 after rising as much as 1.3 per cent. The broader NSE index rose 0.38 per cent, or 22.25 points, to end at 5,928.40.