Benchmark indices staged a recovery in trade after Monday's carnage, as global markets recovered and crude oil prices dropped. On Monday, the Nifty fell a staggering 233 points on tensions in the Middle East.
Most Asian markets led by the Japanese Nikkei were in the positive on Tuesday, with the Dow Futures too pointing to higher openings in the US.
The Sensex was trading with gains of 434 points, while the Nifty was up 129 points in trade. Heavyweights like Reliance Industries, HDFC and HDFC Bank, which saw large scale selling pressure on Monday, recovered in trade.
Shares in HDFC Bank jumped 2 per cent after the bank said that advances were up 20 per cent and deposits were up 25 per cent.
Shares in VST Tiller and Tractors was down marginally, after the company said that Power tillers sales in December increased 4.3 percent to 1,410 units, while tractors sales dipped 39.2 percent to 366 units YoY.
Among the top Nifty gainers were Zee Entertainment, Vedanta, HDFC Bank, State Bank of India and Yes Bank.
Meanwhile, Asian Pacific markets were seeing good gains with the Japanese Markets up 1.34 per cent, while the Hang Sang was up 0.56 per cent and the Australian S&P ASX 200 gained 1 per cent.