The BSE benchmark Sensex recovered by 67 points in early trade on Tuesday on renewed buying, mainly in the PSU and realty sectors, on the back of firm Asian stocks and higher US index futures.
The BSE benchmark Sensex resumed higher at 18,276.78 and shot up further to 18,380.19 before quoting at 18,332.58 at 1015 hours, showing a net gain of 66.55 points, or 0.36%, from its last close.
The NSE 50-share Nifty also moved up by 24.95 points, or 0.46%, to 5,507.35 at 1015 hours.
Banking stocks rose ahead of headline inflation data for May, 2011, which is due on Tuesday.
Car-maker Maruti Suzuki extended recent losses as the strike continued at the company's Manesar plant.
In the 30-member Sensex pack, 25 stocks rose, while the rest fell. Major gainers were DLF (up 1.79 %), Reliance Infra (1.68 %), Bajaj Auto (1.40 %), ONGC (1.28 %), M&M (1.17 %) and ICICI Bank (1.14 %).
Asian stocks rose in early trade after Chinese consumer inflation data came in roughly in line with expectations.
The key benchmark indices in China, Hong Kong, Japan, Singapore, Indonesia, Taiwan, and South Korea were up by between 0.02 % and 1.4 %.