Even as global markets remained subdued, Indian equity benchmarks rallied on Tuesday led by strong buying in banking and pharma stocks.
The Sensex jumped 376 points to 40,522 and the Nifty surged 1.03% to close the trade at 11,889.
Kotak Mahindra Bank was the top Nifty gainer, surging almost 12%, followed by Nestle India, Asian Paints, Shree Cements and Bajaj Finance.
The rupee pared early losses and settled 13 paise higher at 73.71 against the US dollar.