The stock market indices rose on Tuesday as retail inflation dropped to an 11-month low of 4.83 percent in April.
The 30-share BSE Sensex increased by 328.48 points, settling at 73,104.61, while the NSE Nifty went up by 113.80 points to reach 22,217.85.
Reliance Industries, the most valuable firm in the country, also contributed to the positive sentiment with increased buying. Major gainers from the Sensex basket included Mahindra & Mahindra, Larsen & Toubro, JSW Steel, NTPC, IndusInd Bank, Sun Pharma, UltraTech Cement, State Bank of India, Reliance Industries, and Maruti. On the other hand, Nestle, Tata Consultancy Services, Axis Bank, ICICI Bank, Bajaj Finance, ITC, and Asian Paints were among the companies that lagged behind.
Retail inflation eased due to a decline in the prices of some kitchen items, although the overall food basket saw a slight increase.
In the global markets, Seoul and Tokyo settled higher, while Shanghai and Hong Kong ended lower.
European markets were trading mixed, and Wall Street closed with a mixed performance on Monday.
The global oil benchmark Brent crude declined by 0.17 percent to USD 83.22 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,498.92 crore on Monday.
The BSE benchmark ended higher by 111.66 points, or 0.15 percent, at 72,776.13 on Monday, and the NSE Nifty climbed 48.85 points, or 0.22 percent, to 22,104.05.