Register now for FREE unlimited access to Reuters.comThe benchmark indexes had started a truncated week higher on Monday in a one-hour "muhurat" trading session to mark the festival of Diwali. The indexes registered gains for seven straight sessions.
"The recent rebound in the U.S market has a positive rub off on the Indian market and that has pulled the Nifty from 17,200 to 17,700 now, but I believe going ahead, market will still be on its toes," said Aishvarya Dadheech, a fund manager at Ambit Asset Management. "We still have events of rate hikes to play out and more importantly, the remaining path of the interest rates hikes will give more cues to the market."
Investors will focus on major central bank events, with the European Central Bank widely expected to raise rates by 75 basis points this week. Policymakers at the Federal Reserve and the Bank of England meet early next month. In broader Asia, however, equities fell to new 2-1/2 year lows on Tuesday, as weakness in Chinese shares outweighed early gains following a rally on Wall Street on hopes of a less aggressive Federal Reserve.was the top gainer among other sectors, climbing as much as 1.7%.