Markets ended the day marginally higher led by a strong rally in metal stocks like Hindalco and Jindal Steel.
The Sensex was up 40 points, while the Nifty gained 14 points.
Apart from select metal stocks other shares that rallied in trade were State Bank of India, Bharti Airtel, Bank of Baroda and HDFC.
In fact, PSU banking stocks surged across the board in trade following a spectacular rally in State Bank of India. Bank of Baroda was up 3 per cent in trade, while Oriental Bank was up 4 per cent in trade.
Other notable gainers were Syndicate Bank and IDBI Bank. Private sector banks ended the day mixed with ICICI Bank rallying, while HDFC Bank lost ground.
Dr Reddy's continued to lose ground for a second day in a row, while other pharma stocks saw some buying interest.
ITC, which had rallied substantially in trade on Monday lost ground. Among auto stocks Maruti had a good day in trade gaining almost 3 per cent.
Meanwhile, markets in Asia ended the day mixed with the Kospi and the Strait Times rallying while the Hang Sang lost ground.