Equity benchmark Sensex rallied over 500 points in early trade on Tuesday tracking heightened buying sentiment across the board amid strong cues from global markets as hopes of a COVID-19 vaccine boosted investor confidence.

After hitting a high of 37,923.38, the 30-share BSE Sensex was trading 462.77 points, or 1.24%, higher at 37,881.76. Similarly, the NSE Nifty rose 136.35 points, or 1.24%, to 11,158.55.

ICICI Bank was the top gainer in the Sensex pack, rallying around 3%, followed by Maruti, Kotak Bank, Axis Bank, Power Grid and HDFC Bank. On the other hand, Bajaj Finserv and ITC were the laggards.

In the previous session, the BSE barometer ended at 37,418.99, up 398.85 points or 1.08%, and the broader Nifty rose 120.50 points or 1.11% to end at 11,022.20.

Foreign institutional investors were net buyers in the capital market on Monday, purchasing equities worth ₹1,709.97 crore, provisional exchange data showed. According to traders, domestic market participants tracked global stocks rally as hopes of a COVID-19 vaccine increased their risk appetite.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a positive note. Stock exchanges on Wall Street too ended with significant gains in overnight session. Meanwhile, international oil benchmark Brent crude futures rose 0.18% to $43.36 per barrel.