Here are 10 things to know about the markets today:
IndusInd Bank, Tech Mahindra, Axis Bank, ICICI Bank and HCL Technologies, closing between 1.92 per cent and 5.72 per cent higher, were the top percentage gainers in the Nifty basket of 50 shares.
Hindalco, Nestle, Coal India, Tata Motors and NTPC, ending 1.44-2.08 per cent each, were the worst hit among 27 laggards in the index.
HDFC, HDFC Bank, ICICI Bank and Infosys were the biggest contributors to the gain in Sensex. (Also Read: Rangebound Trade, Volatility Likely In Markets As Year Comes To A Close, Say Analysts)
The Nifty Bank index - which tracks stocks of 12 major lenders in the country - ended 1.43 per cent higher, rising for the fifth day in a row.
Banking, which is among the few sectors still down this year, has been catching up with the broader market's advance as foreign investors bet that a rebound in economic activity will benefit lenders.
Equities elsewhere in Asia jumped on Tuesday, with Japanese stocks hitting a 30-year high. MSCI's broadest index of Asia-Pacific shares outside Japan traded 0.46 per cent higher at the last count. Japan's Nikkei 225 benchmark surged 1.63 per cent to its highest since August 1990.
European share markets started the day on a strong note, with the Eurostoxx 50 benchmark index trading 2.34 per cent higher in early trade. The United Kingdom's FTSE 100 index traded 0.33 per cent higher.
US President Donald Trump's approval of a $2.3 trillion stimulus package related to the coronavirus outbreak supported investors' risk appetite. The positive mood also helped oil futures rise during Asian trading in hopes for an acceleration in economic activity.
More US fiscal stimulus has also eased concerns about the threat posed by new variants of the coronavirus identified in Britain and South Africa.