Indian shares closed higher for a third straight session on Tuesday as automakers such as Tata Motors Ltd gained on strong monthly sales, while investors shifted their focus to the Reserve Bank of India`s policy meeting on Wednesday.

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The BSE Sensex rose 0.68 percent to 31,497.38, while the broader NSE Nifty ended 0.72 percent higher at 9,859.50.

Tata Motors shares closed 3.6 percent higher.

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