New Delhi  - India's benchmark Sensex ended 4.5 per cent higher on Tuesday buoyed by a cut in a key lending rate and Prime Minister Manmohan Singh's assurance that the fundamentals of the Indian economy were strong.

The 30-share sensitive index which gained 247.74 points on Monday, added another 460.30 points in trading Tuesday to close at 10,683.39, up 4.5 per cent.

Similarly, the broader 50-share Nifty index gained 112.1 points to close the day's trade 3.59 per cent higher from the previous close Monday at 3,122.80 points.

Market analysts said reassuring statements by Singh on Monday and the repo rate cut by the central Reserve Bank of India along with positive global cues had restored some confidence in the markets. (dpa)