The BSE benchmark Sensex finished 176 points higher on Tuesday on sustained buying by funds and retail investors in afternoon trade.
The Sensex gained 176 points or 0.93 per cent to 19,041 while the Nifty added 43.70 points or 0.77 per cent to 5,748.10.
Buying emerged across sectors after European markets opened in the green.
Metal (2.07%), Oil & Gas (1.99%) and Capital Goods (1.88%) powered the rally and all sectoral indices finshed in positive territory.
SBI, TCS, Wipro, Tata Motors and L&T wre the volume toppers during the session.
Sun Pharma (4.61%), Wiproo (4.28%), Sterlite (3.79%) and ONGC (2.76%) were the top gainers.
Bajaj Auto (-1.53%) and HDFC (-0.74%) were the top losers.
European stocks gained ahead of the Cyprus government officials meeting with representatives of the European Union and the International Monetary Fund to seek easier bailout terms. Stocks advanced to a one-week high on hopes of better-than-expected US data on factory orders.
US futures were trading up while Asian shares were little changed. Japan's Nikkei Index was down 1.08 per cent, while Hong Kong's Hang Seng index was up 0.19 per cent.