The 30-share index rose 73.78 points, or 0.35 percent, to trade higher at 21,216.79 points with stocks of auto, healthcare, capital goods and metal sectors rising. The Sensex had lost 50.57 points in the previous session.
During 2013, the 30-stock index shot up nearly 9 percent, while Nifty rose almost 7 percent. The broad-based National Stock Exchange index Nifty rose 13.30 points, or 0.21 percent, to 6,304.40.
Brokers said selective buying in index-related stocks by participants and a firming trend on other Asian bourses mainly helped Sensex to trade in the positive territory.
In the Asian region, Hong Kong's Hang Seng index rose 0.36 percent, while Shanghai gained 0.70 percent in morning trade on Tuesday. Japan's Tokyo Stock Exchange is closed on Tuesday for a public holiday.
The US Dow Jones Industrial Average closed at another record high of 16,504.29, up 0.16 percent, in Monday's trade.


Latest News  from Business News Desk