The Bombay Stock Exchange Sensex closed 43.66 points higher at 26,392.76 and the National Stock Exchange Nifty rose 14.40 points to end at 8,143.15 on Tuesday. This was the second consecutive session in which Indian markets closed higher, with investor sentiment being boosted by expectations of a rate cut by the Reserve Bank of India, Business Standard reported.

The BSE Midcap and Smallcap indices closed 0.52% and 0.41% higher, performing better than the Sensex and the Nifty. The BSE’s Realty index was the best-performing sector of the day, rising by 2% on the back of gains by Oberoi Realty, Unitech Limited and Sobha Limited. Adani Ports, HDFC, ONGC and Tata Power were also among the day’s top gainers.

Markets stocks made gains during morning trade on Tuesday, with the Sensex rising more than 100 points and the Nifty remaining above the 8,100-mark. The bullish market sentiment was buoyed by the expectation that the Monetary Policy Committee will cut the RBI’s repo rate by 25-50 basis points on Wednesday, following a two-day meet convened on Tuesday, PTI reported. Religare Securities executive said there were likely to be “erratic market swings” before the RBI announced the outcomes of its meeting.

Asian markets, too, influenced the Indian bourses as they recovered after an assurance from Standard & Poor that the result of the Italian referendum would not have any immediate consequences in the country. After Prime Minister Matteo Renzi resigned after losing the vote to introduce constitutional reforms in Italy, the euro fell to a 20-month low.