Indian shares jumped on Tuesday, tracking gains in Asia after record gains on Wall Street, amidst hopes of global growth recovery.
Asian shares advanced after U.S. stocks started the fourth quarter on a strong note on Monday, with all three major indexes hitting record high closes as data pointed to underlying strength in the economy.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.4 percent higher, clawing back losses from earlier in the Asian day.
At 0630 GMT, the S&P BSE Sensex rose 0.83 percent at 31,544 while the broader NSE Nifty gained 0.78 percent to 9,865.
Among the top Sensex gainers: Tata Motors rose 4.2 percent, Asian Paints added 3.2 percent, Bajaj Auto gained 2.3 percent while Reliance Industries advanced 2.1 percent.
Among the sectoral indices, the BSE Auto index gained most and rose 1.6 percent followed by the consumer durables 1.55 percent and the energy 1.36 percent. Meanwhile, the Nifty PSU Bank index dropped 0.32 percent.
Shares of SBI Life Insurance Co debuted 5 percent higher on the bourses after the insurer's Rs. 8,400 crore initial public offer was subscribed 3.58 times last week.
Jaiprakash Associates jumped 4 percent after the company said its bondholders approved exchanging outstanding existing bonds.
GMR Infrastructure rose 2.5 percent after the company said it will raise up to Rs 2500 crore via securities issue.
Dr Reddy's Laboratories gained 3 percent after the company said it launched the Sevelamer Carbonate Tablets in the U.S. markets.
Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.