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Equity benchmark Sensex rallied over 500 points in early trade on Thursday, tracking gains in index-heavyweights Reliance Industries, Infosys and SBI, amid positive cues from global markets.

The 30-share BSE index was trading 513.84 points or 1.27 per cent higher at 41,129.98.

Similarly, the broader NSE Nifty climbed 143.20 points or 1.20 per cent to 12,051.70.

SBI was the top gainer in the Sensex pack, surging over 5 per cent, followed by HCL Tech, Tech Mahindra, Asian Paints, Infosys, Tata Steel, TCS and Reliance Industries.

On the other hand, ONGC and Titan were the laggards.

In the previous session, Sensex ended 355.01 points or 0.88 per cent higher at 40,616.14, while Nifty climbed 95 points or 0.80 per cent to 11,908.50.

Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 146.22 crore on a net basis on Wednesday, according to provisional exchange data.

According to Arjun Yash Mahajan, Head Institutional Business at Reliance Securities, Wall Street rebounded sharply for the third consecutive day despite the outcome of the presidential election looking to be too close.

"Looking at market reactions, it appears that investors seem to be cheering about the possibility of a divided USA government as political gridlock might not lead to increase in corporate tax rates," he said.

India's trade set up looks to be strong as of now mainly on global cues, he said, adding that volatility in the market may continue to persist.

Democratic presidential candidate Joe Biden and his running mate Senator Kamala Harris of Indian origin, inched closer to the magic figure of 270 Electoral College votes, even as incumbent Republican President Donald Trump moved ahead with his plan to mount a massive legal battle.

Biden is falling short of six to 17 Electoral College votes, according to the projections made by various media outlets. Trump's count for the Electoral College votes stood at 214, with his path to victory getting narrower.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with significant gains in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 1.29 per cent lower at USD 40.70 per barrel.

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