After ending Monday on a lower note, the market opened on a positive note, driven by a rally in the banks.
The 30-share Sensex was up 109.42 points at 29346.57, while the Nifty was up 43.15 points at 9088.35. 
Banking stocks such as Axis Bank, ICICI Bank were among the top gainers on both the indices, while GAIL and ONGC were a drag.
IndusInd Bank, HDFC, DCB Bank and Cimmco touched their 52-week highs. Dishman Pharma surged 20 percent and was locked in upper circuit on the back of a product approval by the US drug regulator.
The currency market was closed on account of Gudi Padwa holiday.
Buzzing Stock: Shares of Dishman Pharmaceuticals & Chemicals were locked at 20 percent upper circuit on Tuesday on the back of USFDA approval for its cancer drug Zejula Capsules.
At 09:22 hrs, the stock was quoting at Rs 278.20, up Rs 46.35, or 19.99 percent. It touched a 52-week high of Rs 278.20.