Besides, the 50-share NSE Nifty also reclaimed the 8,500-level by surging 35.60 points, or 0.41 percent, at 8,527.90.
The 30-share Sensex rose by 106.25 points, or 0.37 percent, to trade at 28,082.11. The gauge had surged by 518.28 points in the past two sessions.
Brokers said sustained buying by foreign funds and retail investors, triggered by a firming trends at other Asian markets after China's decision to ease mortgage rules fuelled hopes for further stimulus measures, and overnight rally in US markets helped the key indices to regained their crucial levels.
Besides, the RBI allowing banks to utilise up to 50 per cent of their provisioning buffer towards making specific provisions for bad loans or non-performing assets, as against the earlier 33 percent, influenced sentiments, they added.

Among other Asian markets, Hong Kong's Hang Seng rose by 0.53 percent while Japan's Nikkei gained 0.65 percent in early trade on Tuesday.
The US Dow Jones Industrial Average ended 1.49 percent higher in Monday's trade.

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