From the recent swing low of 21777, Nifty has recovered 670 points, says Devarsh Vakil, Deputy Head Retail Research, HDFC Securities.

The Indian market squandered most of the day’s gains in last-hour selling and closed with modest gains to end higher for a third session in a row, he said.

Nifty Midcap 100 and Smallcap 100 Indices outperformed the Nifty where they gained by 1.06 per cent and 1.23 per cent respectively. The Nifty Smallcap Index registered a fresh all-time high at 16702. Advancing shares outnumbered the declining shares for the second day, he said.

Amongst the sectoral indices, Nifty Reality, FMCG and Consumer Durable gained the most while Nifty Media, IT and FMCG fell the most, he said.

India's economic activity continued to expand in April, driven by strength in both the services and manufacturing sectors. The flash India Composite Purchasing Managers' Index (PMI) climbed to 62.2 in April compared to March's final reading of 61.8.

Neeraj Sharma, AVP Technical and Derivatives Research, Asit C Mehta Investment Intermediates, said that domestic equity benchmarks on Tuesday continued to rise for the third day in a row, buoyed by strong global market trends. The volatility index, India VIX, fell by 19.72% to settle at 10.20, indicating low volatility in the market.