Indian markets staged a late recovery, gaining around 200 points in the intra-day, and ended firm supported by buying in index heavyweights such as Infosys, Reliance Industries, HDFC Bank amid firm European cues.
The S&P BSE Sensex ended 135points up at 24,794 and the Nifty50 closed 47 points up at 7,532.
Among the broader markets, BSE Midcap index closed 0.8% higher while BSE Smallcap index finished flat. The health of the market was slightly stronger with 1,290 advances against 1,193 declines on the BSE.
Overseas, European equities opened higher, shrugging off weak Asian cues. FTSE, DAX, CAC40 have gained between 0.3% and 1% each.
Earlier in the day, Asian markets closed mixed. Shanghai Composite and Nikkei 225 ended lower 1%-1.5% on concerns of the health of the economy while Straits Times ended 1% higher.
In the commodity space, oil prices slipped 3% as Goldman Sachs suggested the rally was unsustainable and industry data showed US stockpiles reached record highs again last week.
Meanwhile, foreign portfolio investors remained net buyers in equities worth Rs 775 crore on Tuesday, as per provisional data released by the stock exchanges.