Equity benchmark Sensex rallied over 500 points in early trade on Wednesday, led by strong buying in HDFC duo, ICICI Bank and Reliance Industries as positive domestic and global cues enthused investor sentiment.

Massive influx of foreign funds also supported market sentiments, traders said.

After hitting a high of 34,422.71, the 30-share index was trading 513.91 points or 1.52 per cent higher at 34,339.44.

Similarly, NSE Nifty surged 164.40 points or 1.65 per cent to 10,143.50.

Bajaj Finance was the top gainer in the Sensex pack, rising around 6 per cent, followed by ICICI Bank, Axis Bank, IndusInd Bank, ONGC, Tech Mahindra and HDFC Bank.

On the other hand, Bharti Airtel, HCL Tech and HUL were among the laggards.

In the previous session, the BSE barometer soared 522.01 points or 1.57 per cent to settle at 33,825.53, and the broader Nifty jumped 152.95 points or 1.56 per cent to 9,979.10.

On a net basis, foreign portfolio investors bought equities worth Rs 7,498.29 crore in the capital market on Tuesday, provisional exchange data showed.

The bulls continued to maintain their firm grip on the markets as the benchmark indices surged led by heavy foreign fund inflow and positive global cues, analysts said.

Encouraging comments by Prime Minister Narendra Modi that India's economy would get back on track as the government is working towards systematic reforms also boosted investor sentiments, they noted.

The further added that gradual reopening of economies world over has fuelled bullish trend in global markets.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul surged up to 2 per cent.

Exchanges on Wall Street ended on a positive note in overnight trade.

International oil benchmark Brent crude futures were trading 1.31 per cent higher at USD 40.09 per barrel.