The benchmark index surged 498 points to close above 9K at the end of the one-hour Muhurat session convened on Tuesday to mark the beginning of Samvat 2065.

The Sensex closed at 9,034, while the broader Nifty ended at 2,684, up 160. Worldwide, investors snapped up stocks after Monday's rout.

Strong buying was seen across all sectors, with realty stocks leading the gainers, as global markets rallied on Tuesday. Unitech surged over 14 per cent while Orbit Corp jumped nearly 20 per cent.

Among the Sensex stocks, M&M lead the gainers, up over 12 per cent. Tata Motors, Hindalco, JP Associates, and Rel Infra were the other major gainers, up 10-11 per cent.

All the sectoral indices on the BSE ended in the green. The realty index on the BSE surged nearly 9 per cent, followed by metals and capital goods, up over 7 per cent.

“Companies with strong domestic earnings and participating in the India growth stories look good. The infrastructure and construction space looks good,” says Rajesh Jain CEO of Pranav Securities.

Japan’s Nikkei stock average jumped 6.41 per cent and Hong Kong’s Hang Seng index surged 14.4 per cent — its biggest gain in 11 years — a day after plunging more than 12 per cent. In Europe trading, the markets were firm. Britain’s FTSE 100 rose 3.4 per cent, Germany’s DAX index jumped 7.4 per cent, and France’s CAC-40 rose 3 per cent.

Fed policymakers plan to convene a regularly scheduled meeting on interest rates. The central bank is expected to lower its fed funds rate by a half-point to 1 per cent on Wednesday, a move that could bolster some investors' confidence by making borrowing more attractive.

US stocks also headed for a rebound on Tuesday as investors awaited the start of a two-day meeting of the Federal Reserve that is widely expected to bring another reduction in interest rates. The Dow was up nearly 3 per cent in the early trade.