India's BSE Sensex closed about 0.4% up at 82,693.7 on Wednesday, a fresh high since July 23 and extending gains for a second day, reflecting a positive yet cautious mood. IT, banking, and auto were the top-performing sectors, whereas metals and FMCG experienced profit-booking. Investors stayed optimistic about the outcome of ongoing trade negotiations between India and the United States. Following a high-level meeting on Tuesday, it was agreed to step up efforts to reach an early, mutually beneficial Trade Agreement. Positive sentiment around policy reforms and domestic inflows also continued to support market sentiment, but ongoing FII selling and caution ahead of the US Fed policy decision capped the momentum. On the business front, SBI, BEL, Kotak Mahindra Bank and Maruti were among the top gainers, adding between 1% and nearly 3%. By contrast, Bajaj Finserv, Titan, ITC and Tata Steel were the biggest laggards.