The 30-share BSE Sensex jumped 1,109.10 points, or 1.54 per cent, to settle near the day’s high at 73,033.78, posting its best single-day gains in four months. During the day, it surged 1,120.99 points, or 1.55 per cent, to hit a high of 73,045.67.

The 50-share NSE Nifty climbed 358.60 points, or 1.60 per cent, to end at 22,721.95, marking its best single-day rebound in more than two months. The index hit a day’s high of 22,721.95.

From the 30 Sensex firms, HCL Tech jumped 8.28 per cent after the IT firm reported a 21.18 per cent rise in consolidated net profit to Rs 5,132 crore for the July-September quarter of FY27, helped by higher margins from its fast-growing advanced AI operations and a lower tax outgo.

Also, Tata Consultancy Services surged 6.59 per cent, Tech Mahindra jumped 4.90 per cent and Infosys was up 4.44 per cent.

HUL, Titan, Bajaj Finserv, SBI, HDFC Bank, M&M and ICICI Bank were also among major index movers.

Kotak Mahindra Bank, Eternal and Maruti were the laggards.

Brent crude, the global oil benchmark, declined 1.66 per cent to USD 104.6 per barrel.

"Indian equities advanced as stronger-than-expected technology earnings boosted confidence in corporate profit growth and lifted benchmark-heavy large-cap stocks. Rupee stability and easing bond yields further supported sentiment, bringing financial stocks into focus," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Finance Minister Nirmala Sitharaman on Tuesday stated that there is a lot of ongoing debate on long-term capital gains (LTCG) tax and STT. She also stated that it is healthy to have this debate and she will be keenly “hearing them”.

The comments triggered buying in blue-chip stocks, helping key indices close near the day’s high levels.

The rupee also rose about 41 paise to 95.37 on Tuesday, marking its third straight session of gains after the RBI announced measures to curb speculative trading in the derivatives market. The rupee has risen over 1.5 per cent in three days, easing concerns about capital outflows.

In Asian markets, South Korea's Kospi tanked 5.46 per cent. Japan’s 225 index also ended lower. Shanghai's SSE Composite index and Hang Seng index settled in positive territory.

Markets in Europe were trading higher.

US markets ended mostly lower on Monday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,708.48 crore on Monday, according to exchange data.

On Monday, the Sensex tanked 547.65 points, or 0.76 per cent, to settle at 71,924.68. The Nifty dropped 157.10 points, or 0.70 per cent, to end at 22,363.35.