Equity benchmark Sensex surged over 500 points in opening trade on Tuesday led by gains in index-heavyweights Reliance Industries, HDFC duo and ICICI Bank amid thin trade in Asian markets.
After hitting a high of 32,264, the 30-share index was trading 431.74 points or 1.36 per cent higher at 32,147.09, and the NSE Nifty rose 114.25 points, or 1.23 per cent, to 9,407.75.
ONGC was the top gainer in the Sensex pack, rallying over 5 per cent, followed by M&M, Bharti Airtel, IndusInd Bank, ICICI Bank, PowerGrid and Tech Mahindra.
On the other hand, Asian Paints, Titan and Ultratech Cement were the laggards.
In the previous session, the BSE barometer settled at 31,715.35, plunging 2,002.27 points, or 5.94 per cent. The broader Nifty suffered a heavy loss of 566.40 points, or 5.74 per cent, to close at 9,293.50.
Foreign portfolio investors were net sellers in the capital market on Monday, as they offloaded equity shares worth Rs 1,373.98 crore, according to provisional exchange data.
According to traders, the market recovered from Monday's lows as stock-specific action lifted key indices.
Positive cues from global markets, despite thin trade in Asia, buoyed market mood, they said.
Bourses in Hong Kong were trading on a positive note, while those in Shanghai, Tokyo and Seoul were closed for a holiday.
Stock exchanges on Wall Street closed with gains in overnight session.
International oil benchmark Brent crude futures were trading 3.86 per cent higher at USD 28.25 per barrel.