The Sensex and the Nifty on Tuesday gained over 200 points during early trade after they opened in the red amid heightened US-China trade spat and tension in the Jammu and Kashmir region.
Buying was seen in heavily beaten down auto and PSU bank stocks.
The benchmark Sensex opened at 36,568.03, lower from its Monday's close of 36,699.84.
At 9.38 a.m., the Sensex traded 208.87 points higher at 36,908.71, while the Nifty also gained nearly 50 points to 10,912.15.
The Foreign Portfolio Investors (FPIs) continued to sell Indian stocks. On Monday FPIs offloaded stocks worth Rs 2,016.73 crore.
Union Home Minister Amit Shah on Monday proposed to scrap Article 370 of the Constitution which gives special status to Jammu and Kashmir and said the state will be split into two Union Territories: Jammu and Kashmir with an Assembly and Ladakh without one.
Making the historic announcement in the Rajya Sabha that triggered bedlam, Shah said: "I am presenting the resolution to revoke Article 370 in Jammu and Kashmir except the first clause 370 (1)."
Global markets came under stress after the renewed trade tension between US-China. US imposed 10 per cent tariffs on about $300 billion of Chinese goods.
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