Sensex on Tuesday climbed 339 points to 60,454.13 in early trade. Meanwhile Nifty was up 88.30 points to 18,024.65.
Bajaj Finserv, Bajaj Finance, Titan, HDFC Bank, HDFC and Infosys were among the top gainers in teh Sensex pack.
Data released on Monday showed India's inflation accelerate to 7 per cent in August, piling more pressure on the central bank to hike interest rates again later this month.
Investors are also eyeing US inflation data that will offer cues for interest rate outlook.