The equity benchmark indices climbed in early trade on Tuesday, extending their rally for the third day running, amid encouraging domestic macroeconomic data.
The BSE benchmark Sensex climbed 119.17 points to 65,747.31 in early trade. The Nifty gained 39.15 points to 19,567.95.
From the Sensex pack, Titan, Sun Pharma, Larsen & Toubro, ITC, Bajaj Finance, Power Grid, Nestle and Tata Motors were the major gainers.
JSW Steel, Bharti Airtel, UltraTech Cement, HCL Technologies and NTPC were among the laggards.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the negative territory.
The US markets were closed on Monday.
Following the recent spate of strong macroeconomic numbers, sentiment has turned risk on for investors, although concerns over a weak monsoon would continue to weigh in the near term, Shrikant Chouhan, Head of Research (Retail) at Kotak Securities Ltd, said.
Manufacturing activities in India gained momentum in August as new orders and output increased at the quickest rate in nearly three years, according to a survey released on Friday.
GST collections grew by 11 per cent to over Rs 1.59 lakh crore in August on the back of improved compliance and reduced evasion, with experts forecasting a higher mop-up to continue in the upcoming festive season.
Domestic passenger vehicle sales hit a record in August, led by the highest-ever monthly dispatches from Maruti Suzuki, on the back of festive demand and the continued strong offtake of SUVs.
Global oil benchmark Brent crude declined 0.07 per cent to $88.94 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,367.67 crore on Monday, according to exchange data.