Domestic stock markets shrugged off early weakness on rise over 1 per cent on Tuesday, a day after the government said the economy was set for a "V-shaped" recovery as the country's gross domestic product contracted 23.9 per cent in the June quarter. The S&P BSE Sensex index climbed up 409.12 points - or 1.06 per cent - to 39,037.41 amid choppy trade in early deals, having slipped to the negative zone briefly following a positive start at 38,754. The broader NSE Nifty 50 benchmark crossed the 11,500 mark, a day after falling more than 2 per cent to 11,387.50.
Hindalco, IndusInd Bank, Bharti Infratel, JSW Steel and Tata Steel, trading between 2.26 per cent and 4.05 per cent higher, jumped the most among the 38 gainers in the 50-scrip Nifty basket.
On the other hand, ONGC, GAIL, ITC, Indian Oil and Bharat Petroleum, down between 0.60 per cent and 3.36 per cent each, were the top Nifty losers.
HDFC Bank, HDFC and Kotak Mahindra Bank were the biggest boosts to Sensex, together accounting for a gain of more than 150 points in the index.
Data released after market hours on Monday showed the country's GDP shrank by a record 23.9 per cent in April-June from a year earlier, much worse than forecasts and pointing to a longer than previously expected recovery with analysts calling for further stimulus.
Consumer spending, private investments and exports all collapsed during the world's strictest lockdown imposed in late March to combat the COVID-19 pandemic and India now looks to be headed for its first full-year contraction since 1980.
Share markets elsewhere in Asia mostly moved higher though caution prevailed amid increasing COVID-19 cases around the globe. MSCI's broadest index of Asia Pacific shares outside Japan was last seen trading 0.71 per cent higher, but Japan's Nikkei 225 benchmark was down 0.21 per cent.
China's Shanghai Composite and South Korea's KOSPI indices were up 0.04 per cent and 0.81 per cent respectively, but Hong Kong's Hang Seng barometer was down 0.04 per cent.
The E-Mini S&P 500 futures were up 0.10 per cent, indicating a mildly positive start for Wall Street on Tuesday, a day after the benchmark US index closed 0.22 per cent lower.