Indian market yesterday shrugged off a widely expected US interest rate hike as the benchmark Sensex bounced 183 points to close at 26,698, with auto, IT, oil and gas shares keeping up the momentum. At the close, Nifty retook the key 8,200-mark, driven by gains in RIL and ONGC stocks. Consumer price index-based retail inflation is scheduled for release yesterday.
Buying picked up after Asian stocks recovered from early bouts of weakness to end higher ahead of the start of a two-day US Federal Reserve meeting. 
After a positive start, the Sensex hit a low of 26,494.23 as investors locked in gains. It surged to a high of 26,724.97 before settling at 26,697.82, up 182.58 points or 0.69%. The gauge had lost 231.94 points in the previous session. The 50-share NSE Nifty closed higher by 51 points, or 0.62%, at 8,221.80.
Intra-day, it hovered between 8,228.85 and 8,155.80. From Sensex and Nifty constituents, Tata Motors emerged as the top gainer by rising as much as 3.48% to close at Rs470.35 on the BSE on talks of block deals in the counter at an up to 10% premium to Monday’s close.
Other prominent gainers included Adani Ports, Axis Bank, Wipro, RIL, L&T and Sun Pharma. In line with the broader trend, shares of state-run oil marketing companies such as BPCL, HPCL and IOC staged a comeback to close higher by up to 2.53% after Monday’s steep fall due to a jump in global crude.
Sector wise, BSE auto index climbed the most by rising 0.98%, followed by IT (0.85 %) and oil and gas (0.81%). 
The broader markets, however, suffered as investors booked profit by liquidating their bets. The BSE mid-cap index fell 0.43% while mid-cap shed 0.07 %. Back home, of the 30-share Sensex, 21 scrips ended higher. However, GAIL fell by 1.34% followed by Tata Steel 0.79%, Lupin 0.71% and Hindustan Unilever 0.41%.
Meanwhile the rupee closed weaker against the US dollar ahead of the two-day US Federal Reserve meeting. Traders are also cautious ahead of key domestic macroeconomic data.
The rupee closed at 67.54 per US dollar — down 0.18% from its Friday’s close of 67.42. The home currency opened at 67.48 against the US dollar. So far this year, it has fallen 2%.
The benchmark 10-year government bond yield closed at 6.419%, compared to Friday’s close of 6.441%. Bond yields and prices move in opposite directions.
So far this year, foreign institutional investors have bought $4.23bn in equities and sold $6.3bn in debt.
Asian currencies closed mixed as traders are focused on the impact of People’s Bank of China monetary tightening and a widely expected fed rate hike and also its outlook for the 2017 rate hike path which will end today.
Taiwan dollar was down 0.22%, Philippines peso 0.18%, South Korean won 0.12%, China renminbi 0.06%, Indonesian rupiah 0.05%. However, Japanese yen was down 0.36%, Malaysian ringgit 0.27%, Singapore dollar 0.25%, China Offshore 0.07%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.12 — up 0.09% from its previous close of 101.03.
Crude oil prices shot to their highest levels since mid-2015 on Monday after Organisation of the Petroleum Exporting Countries (Opec) and other producers reached their first deal since 2001 to jointly reduce output in order to curb the supply glut and drive the market higher.