On the other hand, TCS and HDFC slipped in the red.
Besides recovery in global equities, domestic market rose on hopes of an economic revival in the upcoming budget, traders said.
Further, short-covering ahead of January derivatives expiry also lifted key indices, they added.
Bourses in Japan and South Korea were trading with sharp gains, while markets in Hong Kong opened with significant losses after a Lunar New Year break. Bourses in China remained closed.
Benchmarks on Wall Street too ended higher on Tuesday.
Brent crude oil futures rose 1.36 per cent to USD 59.61 per barrel.
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The rupee appreciated 8 paise to 71.22 against the US dollar in the morning session.
In the previous session, Sensex settled 188.26 points, or 0.46 per cent, down at 40,966.86, and Nifty closed 63.20 points, or 0.52 per cent, down at 12,055.80.
Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 1,357.56 crore, while domestic institutional investors purchased shares worth Rs 711.70 crore on Tuesday, data available with stock exchanges showed.