Stock markets rebounded sharply on Tuesday, a day after facing the worst drubbing in 10 months, as benchmark Sensex recouped 1,089 points after across-the-board value buying amid firm Asian and European markets.

The 30-share BSE Sensex jumped 1,089.18 points or 1.49 per cent to settle at 74,227.08 with 29 of its components ending in the green. During the day, it climbed 1,721.49 points or 2.35 per cent to 74,859.39.

The NSE Nifty surged 374.25 points or 1.69 per cent to 22,535.85. Intra-day, the benchmark soared 535.6 points or 2.41 per cent to 22,697.20.

Sensex tanked 2,226.79 points or 2.95 per cent and Nifty tumbled 742.85 points or 3.24 per cent, marking their worst single day decline in 10 months as global equity markets went into a tailspin on recession fears after US tariff war.

On Tuesday, all Sensex firms, except Power Grid, ended in the positive territory. Titan, Bajaj Finance, State Bank of India, Larsen & Toubro, Axis Bank, Bajaj Finserv, Asian Paints and Zomato were the biggest gainers.

World markets also staged a comeback after Monday's collapse.

In Asian markets, Tokyo's Nikkei 225 index, Hong Kong's Hang Seng, Shanghai SSE Composite index and South Korea's Kospi settled in the positive territory after falling sharply on Monday. Nikkei 225 index jumped 6 per cent.

European markets were quoting higher. US markets ended mostly lower on Monday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 9,040.01 crore on Monday, while Domestic Institutional Investors (DIIs) bought shares worth Rs 12,122.45 crore, according to exchange data.

Global oil benchmark Brent crude climbed 0.22 per cent to USD 64.35 a barrel.

Benchmark indices Sensex and Nifty logged their worst single-day decline in 10 months on Monday, as fears that Trump's policies on reciprocal tariffs may lead to recession and higher inflation in the US going ahead unnerved investors.