The 30-share index jumped 207.64 points, or 0.75 per cent, to 27,737.61, with all sectoral indices led by realty, metal and banking sectors trading positively.
The benchmark index had lost 143.63 points on Monday , fuelled by tepid start to second quarterly earnings and a lacklustre global trend. The NSE Nifty today went up by 55.15 points, or 0.65 per cent, to 8,575.55.
Emergence of buying interest among investors and funds, brokers said, coupled with a firm trend in other regional markets following an unexpected fall in a US manufacturing index boosted sentiment here. A lower industry number means the US Fed may have to tread cautiously on the interest rate front.
Elsewhere, Hong Kong's Hang Seng moved up 0.84 per cent while Shanghai Composite gained 0.48 per cent in early trade today. Japan's Nikkei too was up 0.14 per cent. The US Dow Jones Industrial Average, however, ended 0.29 per cent lower on Monday.