The Sensex and Nifty ended higher on Tuesday, recovering from a six-month low hit in the previous session, as positive global cues following a record-breaking session on Wall Street and an increase in crude prices lifted investor sentiment.
The benchmark BSE index snapped six sessions of falls to end 195.64 points or 0.76 per cent higher at 25,960.78.
Barring power and oil & gas, all other BSE sectoral indices ended in the green. Among them, metal index gained the most by 2.74 per cent, realty 2.53 per cent, auto 1.89 per cent and consumer durables 1.27 per cent, while capital goods index was down 0.69 per cent and power 0.36 per cent.
Top five Sensex gainers were Maruti (+2.97%), Bajaj Auto (+2.89%), HUL (+2.54%), Hero MotoCorp (+2.35%) and Adani Ports (+2.1%), while the major losers were L&T (-1.41%), GAIL (-1.33%), NTPC (-0.87%), Power Grid (-0.51%) and Dr Reddy's (-0.45%).
Financial and auto stocks made up more than half of the NSE index's gain with Maruti Suzuki among the top performers.
But analysts warned the gains were unlikely to last amid growing concerns that the government's shock move to remove higher-denomination banknotes from circulation would hit the economy more than expected.
Asian shares were lifted as crude prices touched their highest for the month after comments from Russian President Vladimir Putin raised the odds of a freeze in oil production.
A report by SMC Global said: "Asian stocks rose today in the wake of solid gains in US markets overnight, while the Japanese yen briefly strengthened after a powerful earthquake rocked northern Japan.US equities closed higher on Monday, led by energy stocks, as oil prices rose on renewed optimism that OPEC was closing in on a deal to cut production. Real gross domestic product of the member countries of the Organization for Economic Cooperation and Development (OECD) area picked up markedly in the third quarter, data showed. GDP growth doubled to 0.6 per cent from 0.3 per cent in the second quarter as growth accelerated in most major seven economies, with the exception of the UK and Germany, where growth slowed in the third quarter, the OECD said. In the United States, growth improved to 0.7 per cent from 0.4 per cent in the previous quarter."