Insight Bureau: The 30-share BSE benchmark zoomed 1,344.63 points or 2.54 per cent to settle at 54,318.47 while NSE Nifty rallied 417 points or 2.63 per cent to finish at 16,259.30.
The Indian rupee touched its record low on Tuesday, before gradually recovering as RBI intervened to check the decline.
Tata Steel, Reliance Industries, ITC, Larsen & Toubro, Wipro, ICICI Bank, HCL Technologies and Maruti were the major gainers among Sensex stocks.
On the Nifty 50 index, 49 of the 50 stocks settled higher and all major sub-indexes also clocked gains on Tuesday.
Meanwhile, international oil benchmark Brent crude gained 0.49 per cent to USD 114.8 per barrel.