The benchmark BSE Sensex gained over 44 points in early trade on Tuesday on emergence of buying by funds and retail investors in select stocks.
The 30-share index, which had lost 244.48 points in the previous session, recovered by 44.73 points, or 0.16%, to 26,861.29, with realty, healthcare, capital goods, power, infrastructure and consumer durables shares leading the recovery.
Also, the National Stock Exchange index Nifty rose 2.90 points, or 0.03%, to 8,044.90.
Brokers said emergence of buying, though selective, by funds and retail investors after remaining sellers on Monday helped trading sentiments to improve.
Major gainers which supported the Sensex were Cipla, Dr Reddy, Sun Pharma, SBI, Maruti, L and T and Hindalco Industries.
Among other Asian markets, Japan's Nikkei fell by 0.33% in early trade on Tuesday, while Hong Kong's financial markets were closed on Tuesday after a typhoon warning.
The US Dow Jones Industrial Average ended 0.26% higher in Monday's trade.