India's BSE Sensex closed about 0.4% up at an over one-week high of 83,871.3 after a choppy session on Tuesday, marking the second day of gains. Market optimism over a US-India trade deal and a potential resolution to the US government shutdown prevailed, despite initial concerns over earnings reports from financials. US President Trump said on Monday that Washington was close to sealing a "fair trade deal" with India. Meanwhile, investors awaited upcoming domestic inflation data, expecting moderation from lower food prices, which could pave the way for additional RBI easing. BEL, Mahindra & Mahindra, Adani Ports, HCL Technologies, Eternal, and Infosys led the advance, rising between 1% and 2.3%. On the downside, Bajaj Finance lagged, slumping over 7%, after the company cut its asset growth forecast, despite reporting a 23% surge in consolidated net profit. Bajaj Finserv, Tata Motors PV, Tata Steel, Kotak Mahindra Bank, and PowerGrid were also among the top losers, shedding up to 6%.