(Updates for markets close)

By Vivek Kumar M and Bharath Rajeswaran

Oct 29 (Reuters) -

India's equity benchmarks advanced on Wednesday, as

investors picked up stocks in anticipation of a U.S. rate cut

later in the day, while a possible U.S.-China trade deal also

boosted sentiment.

Lower U.S. rates typically make emerging markets like India

more attractive to foreign investors.

The Nifty 50 rose 0.45% to 26,053.9 and the BSE

Sensex gained 0.44% to 84,997.13. Both blue-chips

settled less than 1% below their all-time high levels hit in

September 2024.

Fifteen of the 16 major sectors logged gains. Mid-cap

and small-cap indexes rose 0.6% and

0.4%, respectively.

Markets are pricing in a 99.9% chance of a 25-basis-point

Fed rate cut, according to CME's FedWatch Tool.

Overseas investors bought Indian shares worth 103.4

billion rupees ($1.18 billion) on Tuesday, provisional data

showed, marking their biggest single-day purchase in four

months.

"Optimism over U.S.-China trade talks further lifted

confidence after both sides signalled progress toward a

potential deal," said Gaurav Garg, analyst at Lemonn Markets

Desk.

U.S. President Donald Trump began the final leg of his

Asia trip, securing a trade deal with South Korea on Wednesday,

ahead of the meeting with his Chinese counterpart, Xi Jinping,

to finalise a trade agreement later in the week.

Metals, oil and gas and energy

indexes advanced 1.7%, 2.1% and 1.9%, ahead of the

meeting, helped by expectations of trade truce between the

world's two largest economies and top consumers of metals and

crude oil.

Among individual stocks, Adani Energy jumped 5%

after multiple brokerages reiterated their bullish outlook,

citing robust growth across transmission, distribution and smart

meters despite a quarterly profit drop.

State-owned Coal India fell 2.4% after posting a

30.3% drop in consolidated net profit in the September quarter.

HDFC Asset Management Company and Nippon Life

India Asset Management lost about 4.3% and 5.2%,

respectively, after India's markets regulator on Tuesday

proposed measures to simplify mutual fund fee structure.