Benchmark indices Sensex and Nifty started the day on an optimistic note on Tuesday, helped by a rally in Eternal and blue-chip bank stocks.
A largely firm trend in Asian markets also added to the equity markets' optimism during the initial trade.
The 30-share BSE Sensex climbed 337.83 points to 82,538.17 in early trade. The 50-share NSE Nifty went up by 91.3 points to 25,182.
From the Sensex firms, Eternal jumped 10 per cent to hit its upper circuit limit of Rs 298.30. Food delivery and quick commerce firm Eternal, which owns the Zomato and Blinkit brands, on Monday reported a consolidated net profit of Rs 25 crore for the June quarter, as continuing investments in quick commerce and going-out businesses weighed down on its bottom line.
Trent, ICICI Bank, Tata Steel, Titan, Bharat Electronics, HDFC Bank, Axis Bank and Tata Consultancy Services were also among the gainers.
However, Bajaj Finance, Bajaj Finserv, Kotak Mahindra Bank and Mahindra & Mahindra were among the laggards.
In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng traded in positive territory while South Korea's Kospi quoted lower.
The US markets ended mostly higher on Monday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,681.23 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,578.43 crore, according to exchange data.
Global oil benchmark Brent crude dropped 0.85 per cent to USD 68.62 a barrel.
On Monday, the Sensex climbed 442.61 points or 0.54 per cent to settle at 82,200.34. The Nifty jumped 122.30 points or 0.49 per cent to 25,090.70.