The Sensex rose on Tuesday for a second session of gains, led by rate-sensitive stocks such as ICICI Bank and Tata Motors, after headline inflation for July unexpectedly fell, boosting hopes for monetary easing by the RBI.
India's wholesale inflation rose by a lower-than-expected 6.87 percent in July from a year ago, compared to the 7.25 percent gain in June.
ICICI Bank rose 2.3 percent while Tata Motors rose 3.3 percent.
The Sensex provisionally ended up 0.56 percent at 17,731.59 points, while the Nifty rose 0.61 percent to 5,380.35 points.