The benchmark BSE Sensex gained over 60 points to rise above the psychological 21,000 mark in early trade on Tuesday on fresh buying by funds and retail investors in select stocks.
Besides, a firming trend in the Asian markets also buoyed the trading sentiment here.
The 30-share index, which had lost 173.47 points in the previous session, recovered by 60.18 points, or 0.28 per cent, to 21,006.83 with stocks of consumer durables, metal, banking and IT sectors leading the rise.
Also, the National Stock Exchange index Nifty rose 16.40 points, or 0.26 per cent, to 6,237.85. Brokers said a firming trend in Asian markets on bargain-buying after yesterday's sell-off influenced the sentiments here.
Among other Asian markets, Hong Kong's Hang Seng was up by 0.23 per cent while Japan's Nikkei rose 0.32 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.94 per cent down in yesterday's trade.