Benchmark indices rose sharply in trade, following across the board gains from markets around the world.
The Dow Jones ended higher on Monday and Dow Futures were pointing to higher openings on Tuesday, which propelled global markets higher.
Asian markets saw a huge rally with the Japanese Nikkei up more than 4 per cent, and the Hong Kong's Hang Sang rallying nearly 3 per cent in trade.
The Sensex was trading with gains of 720 points, while the Nifty rose 219 points in trade.
Tata Motors shares were up marginally down after the company reported a loss of Rs 9,894.25 crores for the quarter ending March 31, 2020, versus a net profit of Rs 1,117.5 crores in the corresponding period of last year.
To gainers from the Nifty were Hindalco, UPL, ICICI Bank and IndusInd Bank.
Shares in Narayana Hrudayala were trading lower after the company posted a net profit of Rs 11.96 cr oresas against Rs 37.15 crores in the corresponding period of last year.
Reliance Industries shares hit a record high after unconfirmed reports that Saudi Arabia's wealth fund Public Investment Fund (PIF) is all set to pick up a stake in Jio. The shares were up 2 per cent at Rs 1641.