The Nifty pharma index jumped as much as 2.2 per cent to its highest since May 8.
SP BSE Sensex closed higher on Tuesday by 209.05 points or 0.59 per cent and closed at 35,692.52 while Nifty-50 index gained 55.90 points or 0.52 per cent and closed at 10,842.85.
Stock markets closed positive on Tuesday after US President Donald Trump said a summit meeting with North Korea's Kim Jong Un had made 'a lot of progress', raising hopes of a landmark deal to end the nuclear standoff on the Korean peninsula.
Stock markets are also awaiting the release of key macro-economic data of IIP and retail Inflation (CPI) due later today.