Investors await consumer price index data due on Thursday. The country's retail inflation likely rose to a 10-month high in August, while staying below the Reserve Bank of India's medium-term target of 4%, a Reuters poll of economists showed. The Nifty banking index, which tracks both state-owned and private-sector lenders, closed nearly 1% higher with Yes Bank shares gaining as much as 19.57% - its biggest intraday spike since Feb. 14.
Auto makers were among the top gainers on the blue-chip index, with Tata Motors Ltd finishing the session 10.6% higher and Eicher Motors Ltd closing nearly 5% up.