India markets surged on Tuesday, with the Bombay Stock Exchange Sensex rising 520.91 points to end at 28,050.88 and the National Stock Exchange Nifty gaining 157.50 points to close at 8,677.90. The rally took place on the back of gains by stocks in various sectors as well as good performances by global markets, NDTV reported.

Companies such as ICICI Bank and Larsen & Toubro saw strong buying among investors, with the two stocks closing 4.04% and 2.34% higher. HDFC Bank, Infosys and Reliance Industries were also among the biggest gainers during the day’s trading. While the small- and mid-cap indices rose 1% each, 1,894 shares on the BSE ended trading on a positive note.

Asian markets also ended higher, with Hong Kong's Hang Seng index rising 1.6% and Japan's Nikkei 225 gaining 0.4%, according to AP. European markets started on a strong note, as well, with Britain's FTSE 100 rising 1% during early trading and France's CAC 40 advancing by 1.3%.

Meanwhile, the rupee also touched a one-week high of 66.78 against the United States dollar. Other Asian currencies such as the South Korean won and the Taiwanese dollar made gains, as well.

Analysts said the weakening of the US dollar was one of the reasons for the rally by markets and currencies, according to Business Standard. The chief market strategist of Geojit BNP Paribas, Anand James, said recent earnings reports by companies "also helped investors to be stock-specific". James added that investors were also waiting for the outcome of the three-day meeting of the Goods and Services Tax Council, which began on Tuesday. The GST Council will decide on key issues during the meeting, including the rate bands for the new tax regime and the compensation of states for revenue losses.