Equity benchmark indices Sensex and Nifty rebounded in early trade on Tuesday after falling in the previous trading session, amid a rally in global markets.
Moreover, buying in blue-chip stocks -- Reliance Industries and HDFC Bank -- also added to the markets optimism during the initial trade.
The 30-share BSE Sensex climbed 177.79 points to 83,784.25 in early trade. The 50-share NSE Nifty went up by 51.2 points to 25,568.25.
From the Sensex firms, Asian Paints, Bharat Electronics, UltraTech Cement, Reliance Industries, HDFC Bank and HCL Tech were among the gainers.
However, Trent, Axis Bank, Eternal and Tata Steel were among the laggards.
In Asian markets, South Korea's Kospi and Shanghai's SSE Composite index were trading in the positive territory while Japan's Nikkei 225 index quoted lower.
The US markets ended higher on Monday.
"With the mother market US setting new record highs, the global equity market mood is positive. West Asian geopolitics is no longer a threat to global economy or markets. Strong macros of the Indian economy can facilitate increasing fund flows into Indian equity," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.
Going forward, the market is likely to be influenced by developments on the tariff front, he added.
Global oil benchmark Brent crude dipped 0.24 per cent to USD 67.61 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 831.50 crore on Monday, according to exchange data.
In the previous trade, the Sensex dropped 452.44 points or 0.54 per cent to settle at 83,606.46. The Nifty declined 120.75 points or 0.47 per cent to 25,517.05.