Indian shares rose on Tuesday, led by a rebound in financials after a two-session lull, while information technology (IT) stocks extended gains amid a global stock rally on expectations that U.S. interest rates have peaked.

The NSE Nifty 50 index rose 0.37% to 19,766.50 points and the S&P BSE Sensex was up 0.36% at 65,887.94, respectively, as of 10:12 a.m IST.

Twelve of the 13 major sectors advanced. High weightage financials gained 0.5%, snapping a two-session losing streak after Reserve Bank of India tightened norms for consumer credit.

IT companies, which earn a significant share of their revenue from the U.S., extended gains on hopes that the U.S. Federal Reserve will not hike rates further in this cycle.

Since soft U.S. inflation data on November 14, IT index has gained 6.33%.

Asian markets are up as well, tracking an overnight Wall Street rally to multi-month highs. The MSCI Asia ex-Japan index is up 1.12%.

"Focus will be on the minutes of the latest Fed meeting, for cues into the central bank's rate outlook" said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services. The Fed policy minutes is due post market hours.

Small-caps and mid-caps gained about 0.4% each and hit fresh record highs.

Metals gained 1.5% while realty index added 1%.

Oberoi Realty added 2% after announcing launch of a luxury residential project in Thane, Maharashtra.

Sunteck Realty 2%. Motilal Oswal estimated a 25% compound annual growth rate (CAGR) in earnings over fiscal 2023 and fiscal 2026, due to 2-3 upcoming project launches.

Railway wagon maker Titagarh Rail Systems climbed 9.5% to a record high after signing partnership with ABB India for metro projects in India. ABB, which makes factory robots and automation systems, rose 1.7%.

(Reporting by Bharath Rajeswaran in Bengaluru; editing by Eileen Soreng and Nivedita Bhattacharjee)