Nifty hit a five-month closing high on Monday, conquering the resistance zone of 18,200. Large buying was seen from foreign and domestic investors on Monday. Foreign institutional investors bought Rs 2,123 crore in cash, while domestic institutional investors bought Rs 245 crore in cash markets.

US markets closed flat on Monday as investors awaited inflation data. Brent crude prices increased 2 percent overnight as recession fears began to fade.

Mankind Pharma will be listing on the exchanges today. It is the largest IPO this year, so far. The company has raised Rs 4,326 crore via the IPO and has witnessed a very strong subscription from institutions.

Companies such as Apollo Tyres, Lupin, Castrol, Eveready and Nazara Tech will be reporting their earnings today.

"Notwithstanding the global concerns, India is on a path of capex cycle recovery. Investors have warmed up to a capex upcycle, but there is a perceived dearth of playable stock ideas As the investment cycle gathers pace, we believe that investors will be forced to buy the stocks even if considered expensive. We liken this situation to the re-rating of consumer stocks over the last decade," said Mahesh Nandurkar of Jefferies, adding their preferred capex cycle plays are L&T, Thermax, Polycab, and KEI.