Stocks on Tuesday 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 powering the show. At the close, Nifty retook the key 8,200-mark, driven by gains in RIl and ONGC stocks. The gains came ahead of the release of consumer price index-based retail inflation numbers for November.
Buying picked up after Asian stocks recovered from early bout of weakness to end higher ahead of the start of a two-day US Federal Reserve meeting, which is due to start later on Tuesday.
The rate-setting panel is widely expected to hike its key interest rate. 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 per cent.