The market bounced back in early trade Tuesday on short covering after getting butchered in previous session amid Chinese sell-off. The 30-share BSE Sensex rose 112.70 points to 25736.05 and the 50-share NSE Nifty climbed 37.10 points to 7828.40.
The market breadth was positive as about 600 shares advanced against 111 declining shares on the BSE.
Tata Steel, Hindalco Industries, Tata Motors, BHEL, Adani Ports, Cairn India, Idea Cellular, NTPC and Bajaj Auto were early gainers, rising around 1-1.5 percent.
The Indian rupee has opened higher by 11 paise at 66.50 per dollar versus 66.61 Monday.
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Asian markets recovered from Monday's sharp selloff while Chinese markets tumbled at opening before quickly erasing early losses. The Shanghai Composite fell 3.1 percent before gaining 0.95 percent.
US stocks, meanwhile, closed lower on Monday, weighed by renewed concerns of global economic slowdown and increased tensions in the Middle East.
European markets too slumped to close sharply lower following a sell-off in Chinese stocks and heightened geopolitical tensions.
Germany's DAX fell 4.3 percent, with London's FTSE and France's CAC ending sharply lower, down 2.4 and 2.5 percent respectively.