Buying was visible across sectors as all the 15 sector gauges, barring the index of IT shares, were trading higher led by the Nifty Auto index's 1.3 per cent gain
The Indian equity benchmarks staged a strong recovery from intraday lows hit in opening deals led by gains in Mahindra & Mahindra, Kotak Mahindra Bank, Reliance Industries, Bajaj Finserv and Bajaj Finance. The Sensex recovered over 700 points from day's lowest level and Nifty 50 index moved above its important psychological level of 17,500 after hitting an intraday low of 17,345 defying weak global cues.
As of 9:35 am, the Sensex was up 89 points at 58,863 and Nifty 50 index advanced 43 points to 17,534.
Asian shares were down for a sixth straight session on Tuesday after a renewed spike in European energy prices stoked fears of recession and pushed bond yields higher, while tipping the euro to 20-year lows.
Benchmark gas prices in the European Union surged 13 per cent overnight to a record peak, having doubled in just a month to be 14 times higher than the average of the past decade.
Japan's Nikkei fell 1.2 per cent, Hong Kong's Hang Seng dropped 0.57 per cent, Taiwan Weighted slipped 0.98 per cent and South Korea's KOSPI declined 0.86 per cent.
Overnight, US stocks fell broadly on Wall Street, extending the market’s losses amid worries about inflation and the path ahead for the economy.
The S&P 500 shed 2.1 per cent Monday, its biggest drop since mid-June. Some 95 per cent of stocks in the benchmark index lost ground. It finished in the red last week, breaking a four-week winning streak. The Dow Jones Industrial Average and the Nasdaq also fell.
Back home, buying was visible across sectors as all the 15 sector gauges, barring the index of IT shares, were trading higher led by the Nifty Auto index's 1.3 per cent gain. Nifty Metal, Pharma, PSU Bank, Healthcare, Consumer Durables, Oil & Gas, Financial Services and Bank indices also rose between 0.4-0.8 per cent.
Broader markets were also witnessing buying interest as Nifty Midcap 100 index rose 0.8 per cent and Nifty Smallcap 100 index climbed 0.75 per cent.
Eicher Motors was top Nifty gainer, the stock rose 3.2 per cent to Rs 3,470. Bajaj Finserv, Mahindra & Mahindra, Tata Steel, Grasim Industries, Hindalco, Cipla, JSW Steel, Coal India and Ultratech Cement also rose 1.5-3 per cent.
On the flipside, Tech Mahindra, Infosys, HCL Technologies, Wipro, Tata Consultancy Services, IndusInd Bank and Hindustan Unilever were among the losers.
The overall market breadth was extremely positive as 2,080 shares were advancing while 808 were declining on the BSE.