The Sensex and Nifty ended nearly 1 per cent higher on Tuesday amid buying in index majors Reliance Industries and HDFC twins.
The 30-share BSE benchmark Sensex rallied 562.75 points or 0.94 per cent to settle at 60,655.72. During the day, it jumped 611.51 points or 1 per cent to 60,704.48.
The broader NSE Nifty climbed 158.45 points or 0.89 per cent to end at 18,053.30.
From the Sensex pack, Larsen & Toubro, Hindustan Unilever, HCL Technologies, HDFC Bank, HDFC, Reliance Industries, UltraTech Cement, Tata Consultancy Services and NTPC were the prominent gainers.
State Bank of India, IndusInd Bank, Bajaj Finserv, Wipro, Tata Steel and Bajaj Finance were among the laggards.
Elsewhere in Asia, equity markets in Tokyo settled in the green, while Seoul, Shanghai and Hong Kong ended lower.
Equity exchanges in Europe were trading in the negative territory in mid-session deals. Markets in the US were shut on Monday on account of Martin Luther King Jr Day.
International oil benchmark Brent crude rose 0.67 per cent to USD 85.03 per barrel.
Foreign Institutional Investors (FIIs) offloaded shares worth a net Rs 750.59 crore on Monday, according to exchange data.