The Sensex gained 1.21 percent.
The BSE Sensex gained 291.47 points to end Tuesday at 24479.84 while NSE Nifty gained 84.10 points to finish at 7435.10.
Index heavyweight Reliance Industries was up 2.3 percent ahead of its quarterly results later in the day.
China’s gross domestic product data came mostly in line with market expectations though factory output and retail sales dipped slightly below expectations.
Shares of capital goods, infra, banking, realty, power, healthcare, auto and oil&gas firmed up, helping the index to record its biggest single-day gain of 2016 so far.
The S&P BSE Sensex, which opened at 24,400.78 points, was trading at 24,290.45 points (2.45 p.m.) – down 164.59 points or 0.67 percent from the previous day’s close at 24,455.04 points. The company posted a 38.7% increase in its consolidated net profit at Rs 7,290 crore for the third quarter of this financial year.
At the National Stock Exchange (NSE), the broader 50-share Nifty was trading at 7,318.30 points, down 116.80 points, or 1.57 percent.
Gains in local shares tracked a recovery in Asian shares, which rose after data showing China’s economy grew in the fourth quarter of 2015 at its weakest pace in almost seven years, raising the chances of more stimulus policies.
Most Asian markets rose, led by a 3.25% rise in China’s Shanghai Composite index. In Hong Kong, the Hang Seng index rose 2.07 percent, while indexes in Japan, Singapore, South Korea and Taiwan rose by 0.56 percent to 1.75 percent.
In Europe, London’s FTSE 100 was up by 1.79%, France’s CAC 40 moved up by 2.35%, and Germany’s DAX Index was higher by 1.97% at the closing in the Indian markets.
Overall, the market breadth ended with extreme weakness – as seven shares declined for every one share that advanced.
Major gainers were Axis Bank up 3.60 per cent, ICICI Bank 3.28 per cent, SBI 1.99 per cent, Tata Motors 1.95 per cent, Infosys 1.77 per cent, NTPC 1.75 per cent and RIL 1.73 per cent. The total turnover fell to Rs 3,062.84 crore from Rs 3,191.81 crore yesterday.