Sensex edges higher; rate-sensitive stocks up ahead of inflation data

MUMBAI (Reuters) - The BSE Sensex edged higher on Tuesday as rate-sensitive stocks such as ICICI Bank rose on hopes lower retail inflation data would lead to early interest rate cuts, although profit-taking prevented the indexes from hitting further record highs.

ICICI Bank provisionally rose 1.4 percent while Axis Bank ended up 1.7 percent.

Non-banking finance companies also rose after the RBI's rules on bad loans and capital requirements were on expected lines.

Housing Development Finance Corporation provisionally rose 1.2 percent, while IDFC ended up 2.7 percent.

The Sensex provisionally closed 0.13 percent higher, while the broader Nifty gained 0.22 percent.

(Reporting by Abhishek Vishnoi; Editing by Sunil Nair)