Benchmark indices ended the day higher, ahead of the Reserve Bank of India (RBI's) Monetary Policy on Tuesday, where it is largely expected that the country's central bank would cut interest rates.
The Sensex ended the day with gains of 130 points, while the Nifty gained 45 points in trade. Leading the set of gainers from the Nifty and the Sensex were rate sensitive stocks like Mahindra and Mahindra, Tata Motors and Bajaj Auto.
Banking stocks mostly ended the day lower, ahead of the policy. Federal Bank, Punjab National Bank, Axis Bank and State Bank of India were among the losers.
ICICI Bank ended the day flat despite reports that the bank had sold a 9 per cent stake in its general insurance venture ICICI Lombard and a 2 per cent stake in life insurance subsidiary ICICI Prudential for about Rs 2,200 crore.
Shares in Adani Enterprises surged after reports that the Group had won mining leases for its $16-billion Carmichael coal project in Australia. The stock was up 5 per cent in trade.