The benchmark BSE Sensex climbed 109.61 points or 0.39 per cent to trade at 27,839.82 with capital goods, metal, PSU and healthcare stocks leading the rally.
The benchmark index had gained 1,359.23 points in the previous seven sessions.
The National Stock Exchange index Nifty rose 30.50 points or 0.36 per cent to 8,383.60.
Sentiments remained strong after a better-than-forecasted monsoon reignited the optimism among market participants that a rate cut by the RBI may be a possibility, brokers said.
Besides, fresh capital inflows by foreign funds on the domestic bourses and a firming trend in global markets on hopes for a Greek bailout deal, boosted sentiments, they said.
Among other Asian markets, Hong Kong’s Hang Seng index was up by 0.20 per cent, while Japan’s Nikkei jumped 1.62 per cent in early trade on Tuesday.
The US Dow Jones Industrial Average ended 0.58 per cent higher in Monday’s trade.
PTI