The stock markets recovered on Tuesday as optimism grew over the resumption of India-US trade talks.

The Sensex surged 594.95 points, or 0.73 per cent, to close at 82380.69, after touching an intraday high of 82443.48. The Nifty advanced 169.90 points, or 0.68 per cent, to 25239.10, led by gains in auto and IT stocks.

A rally across Asian and US markets, along with expectations ahead of the US Fed’s policy meeting this week, also boosted sentiment.

Among Sensex stocks, Kotak Bank rose the most at 2.55 per cent, while L&T, M&M, Maruti, Airtel and Tata Steel were also major gainers.

“Favourable global cues, expectations of a 25 basis point Fed rate cut, and renewed optimism around India-US trade negotiations helped the recovery,” said Vinod Nair, head of research, Geojit Investments.

Rupee gains

The rupee firmed up 7 paise to settle at 88.09 against the US dollar, supported by strong equities and a weaker greenback, which hovered near a two-month low on weak US data. During the day, the currency traded between 88.16 and 88.01. On Monday, the rupee had closed 10 paise higher at 88.16.

The dollar index, which gauges the greenback’s strength against six currencies, fell 0.26 per cent to 97.04.