Key equity indices closed half a per cent higher on Tuesday with banking and financial scrips leading the momentum.
The BSE S&P Sensex closed 259 points or 0.55 per cent up at 47,613 while the Nifty 50 edged higher by 59 points or 0.43 per cent to 13,933.
Sectoral indices at the National Stock Exchange were mixed with Nifty private bank rising by 1.55 per cent, financial service by one per cent and IT by 0.7 per cent.
Among stocks, IndusInd Bank jumped by 5.7 per cent to Rs 916.50 per share while Axis Bank gained by 2 per cent, ICICI Bank by 1.9 per cent and HDFC Bank by 1 per cent.
State Bank of India moved up by 0.9 per cent while home loan lender HDFC advanced by 1.4 per cent.
Tech Mahindra, HCL Technologies, ITC and GAIL, too, traded with a positive bias. However, those which lost were Hindalco, JSW Steel, NTPC, Nestle India, Tata Motors and Reliance Industries.
Meanwhile, Asian shares jumped with Japanese stocks hitting a 30-year high as hopes that a long-awaited US pandemic relief package will be expanded and a Brexit trade deal supported investor risk appetite.
Japan's Nikkei leapt by 1.63 per cent to its highest since August 1990 but closed 0.04 per cent lower while Hong Kong's Hang Seng moved up a bit by 0.16 per cent.
Most other Asian markets were mixed as holiday season saw lower volumes as traders booked profit.