Sensex rangebound ahead of holidays, derivatives expiry

MUMBAI (Reuters) - India's stock markets tiptoed between minor gains and losses on Tuesday, as investors avoided building large positions in a holiday-shortened week and ahead of the expiry of derivatives contracts next Thursday.

Domestic shares also tracked Asian markets, which edged up taking solace from Wall Street gains and some stability in recently weak crude oil prices.

Local markets will be closed on Friday for Christmas.

"It's going to be rangebound with some positive bias, we will not have any major exciting or disappointing global cues this week," said Gaurang Shah, vice president at Geojit BNP Paribas.

The broader NSE Nifty was up 0.1 percent, while the benchmark BSE index <.BSESN> was 0.14 percent higher.

Gains in financials and energy stocks edged out declines in IT and consumer shares.

Reliance Communications shares rose 3 percent after the company said it held talks for a potential merger of its wireless business with smaller rival Aircel.

A small pull-back in global oil prices saw stocks such as Reliance Industries , ONGC and Cairn India gain between 0.5 percent and 1 percent each.

Sun Pharmaceutical Industries shares, which fell more than 7 percent on Monday about a warning letter from the U.S. drug regulator, recovered slightly to gain 1 percent.

(Reporting by Karen Rebelo in Mumbai; Editing by Subhranshu Sahu)