By Vishal Sridhar
(Reuters) - The BSE Sensex and Nifty rose for a fourth straight session on Tuesday, led by gains in Tata Steel Ltd and Bank of Baroda Ltd, with investors keeping an eye out for inflation data due later in the day.
IndusInd Bank Ltd, which is in exclusive talks to buy microlender Bharat Financial Inclusion Ltd, fell 2.4 percent after rising more than 5 percent in the previous session.
"The IndusInd Bank (potential) deal is expected to open up more distribution channels in the banking sector and this expectation is lifting banking stocks," said Sunil Sharma, chief investment officer at Sanctum Wealth Management.
Tata Steel Ltd jumped as much as 4.6 percent, its highest since February 2011, after Germany's Thyssenkrupp AG said talks were in the final stages to merge its European steel business with that of Tata Steel.
ITC Ltd rose as much as 1.4 percent, its third straight session of gains.
Meanwhile, Apple Inc distributor Redington (India) Ltd rose as much as 4.2 percent to hit a record high ahead of the expected launch of "iPhone 8" later on Tuesday.
(Reporting by Vishal Sridhar in Bengaluru; Editing by Biju Dwarakanath)