India's benchmark stock indices rose over 1% before paring gains to close at a four-week high on Thursday.
Information technology, healthcare and consumer durable sectors advanced, while banks and fast-moving consumer goods were under pressure.
The S&P BSE Sensex closed 307 points, or 0.47%, higher at 65,982.48, while the NSE Nifty 50 ended 90 points, or 0.46%, up at 19,765.20.
During the day, the Sensex rose 1.04% to 66,358.37, the highest since Oct. 18; and the Nifty rose 1.02% to 19,875.25, the highest since Sept. 20.
The indices benefited from positive sentiments in global markets due to a dip in global inflation numbers for October, according to Shrey Jain, chief executive officer at SAS Online.
Stocks paused their rally as the euphoria over a potential dovish pivot by central banks faded.
The MSCI Asia Pacific index trimmed declines of as much as 0.8%, halting a three-day winning run. Europe's Stoxx 600 index steadied after three days of gains. The MSCI Asia Pacific index slid 0.4%, with Chinese shares in Hong Kong leading the decline. South Korean shares were little changed.
Infosys Ltd., Tata Consultancy Services Ltd., Bajaj Finance Ltd., HCL Technologies Ltd., and HDFC Bank Ltd. were positively contributing to the change in the Nifty.
Axis Bank Ltd., ICICI Bank Ltd., ITC Ltd., Larsen & Toubro Ltd., and Power Grid Corp. were negatively contributing to the change.
The broader markets ended higher. The BSE Midcap was up 0.52%, while the Smallcap was 0.52% higher.
Seventeen out of the 20 sectors compiled by BSE Ltd. advanced, while three declined. Information technology rose the most.
The market breadth was skewed in the favour of buyers. About 2,035 stocks rose, 1,717 declined, and 122 remained unchanged on the BSE.
During the last five general elections, the markets had rallied in the run-up, with returns ranging from 3.1% to 30.4% in the six months to the polls, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services.
"Markets like stability and, therefore, the market's preference would be the continuation of the BJP regime," Vijayakumar said. "But if the I.N.D.I.A alliance succeeds in toppling the NDA, there will be a sharp correction in the market. But the probability of such an outcome is very low now."
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
