Sensex edges higher; NSE auto index hits record

By Vishal Sridhar

(Reuters) - Indian shares edged higher on Tuesday as the ruling party's wins in key state elections continued to boost sentiment, with auto stocks leading the gains, while strength across Asian markets also lent support.

Blue chips benefited after Prime Minister Narendra Modi's Bharatiya Janata Party sealed victories in his home state of Gujarat and Himachal Pradesh, raising hopes of continued reforms.

"Markets are now stabilized after a volatile session early on Monday as BJP emerged victorious in Gujarat. Optimism of passage of tax legislation by the U.S. also boosts the sentiment," said Anand James, chief market strategist, Geojit Financial Services.

MSCI's broadest index of Asia-Pacific shares outside Japan firmed 0.3 percent on Tuesday, after a record-setting session on Wall Street on bets that U.S. lawmakers would pass sweeping tax legislation.

The broader NSE index was up 0.36 percent at10,425.65 as of 0532 GMT, while the benchmark BSE index was 0.37 percent higher at 33,724.66.

Auto stocks contributed the most to the indexes' gains, with NSE Auto index climbing as much as 1.75 percent to a record. Mahindra and Mahindra Ltd climbed to an all-time high of 1,551.95 rupees.

Tata Motors Ltd and Eicher Motors Ltd are among the top gainers on the NSE index, advancing 1.6 percent and 2.2 percent, respectively.

Metal stocks continued to gain for a fourth straight session, with NSE Metal index advancing as much as 1.43 percent.

(Reporting by Vishal Sridhar in Bengaluru; Editing by Amrutha Gayathri)