Indian markets remain closed on Tuesday on account of Mahashivratri.
Positive cues from global markets helped benchmark indexes recover from their biggest weekly losses since August on Monday.
The BSE Sensex jumped 294.71 points or 0.87 percent to 34,300.47 while the broader Nifty index ended up 84.80 points or 0.81 percent at 10,539.75. The rupee closed marginally higher at 64.32 per dollar.
Official data released after market hours on Monday showed that India's consumer price inflation slowed in January as food prices softened. Consumer price inflation slowed to 5.07 percent from 5.21 percent in December.
Another report showed that industrial output grew more than expected in December. Industrial production expanded 7.1 percent year-on-year in December, beating forecasts for 6 percent growth. Nonetheless, this was slower than the revised 8.8 percent growth registered in November.
Asian stocks are trading mostly higher this morning even as underlying sentiment remained cautious ahead of U.S. inflation data due later this week.
Commodities such as copper, oil and gold inched higher as the dollar pulled back from two-week highs.
U.S. stocks rallied overnight, adding to the gains posted in the previous session, after the Trump administration unveiled a long-awaited infrastructure plan that includes $200 billion in federal infrastructure spending over 10 years.
The Dow jumped 1.7 percent, the tech-heavy Nasdaq climbed 1.6 percent and the S&P 500 added 1.4 percent.
European markets also rose sharply on Monday as global equities bounced back after posting their worst week in years.
The pan-European Stoxx Europe 600 index gained 1.2 percent. The German DAX rallied 1.5 percent, while France's CAC 40 index and the U.K.'s FTSE 100 both rose about 1.2 percent.