Among the Sensex firms, JSW Steel, Tech Mahindra, Tata Steel, Infosys, Wipro, Tata Consultancy Services, HCL Technologies and Axis Bank were the major gainers.
Power Grid, Nestle, Mahindra & Mahindra and Asian Paints were the laggards.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the positive territory.
The US markets ended with significant gains on Tuesday.
“The October US inflation data is a game changer for the stock market. The 3.2% October inflation print is lower-than-expected. More importantly, the mere 0.2% MoM (Month-on-Month) increase in core inflation is hugely positive.
“The takeaway from these numbers is that the Fed is done with rate hikes and the timeline for rate cuts in 2024 is likely to be advanced. The sharp recovery in US markets will be reflected in India, too,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
A decline in CPI inflation in India is also a favourable factor, Vijayakumar added.
Global oil benchmark Brent crude climbed 0.33% to USD 82.74 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,244.44 crore on Tuesday, according to exchange data.
Equity markets were closed on Tuesday on account of Diwali Balipratipada.
The BSE benchmark fell 325.58 points or 0.50% to settle at 64,933.87 on Monday. The Nifty declined 82 points or 0.42% to 19,443.55.
Continuing the downward trend, retail inflation slipped to a four-month low of 4.87% in October, mainly due to easing food prices and inched towards the Reserve Bank’s target of 4%, according to government data released on Monday.
Wholesale price inflation remained in the negative territory for the seventh month in a row in October at -0.52% on easing prices of food items.
A negative WPI inflation, technically termed as deflation, means that overall wholesale prices have been falling year-on-year.