The BSE Sensex and Nifty edge higher, helped by continued foreign investment inflows in the past few weeks. FIIs bought 3.18 billion rupees worth of shares on Tuesday, totalling more than 72 billion rupees worth of buying over the previous nine sessions. The Sensex gains 0.34 percent, while the Nifty is up 0.32 percent.
Consumer goods makers and drug companies perceived defensive rose on caution ahead of the conclusion of the two-day U.S. Federal Reserve meeting later in the day that is expected to result in the start of a rollback of its stimulus.
ITC Ltd (ITC.NS) gains 0.7 percent, while Hindustan Unilever Ltd (HLL.NS) is up 1.4 percent.
Dr.Reddy's Laboratories Ltd (REDY.NS) up 1.4 percent following the U.S. drug regulator's approval for selling a generic version of Celgene Corp's (CELG.O) anti-cancer drug Vidaza. DRL shares rose 3.6 percent on Tuesday.
Coal India Ltd (COAL.NS) is up 1 percent on expectations of positive announcements from its annual shareholders meeting later in the day, dealers said.
However, Goldman Sachs remains "underweight" on Indian shares in its Asia Pacific portfolio and maintains its Nifty target at 5,700, saying the macro outlook remains challenged, which coupled with t