Equity benchmark BSE Sensex rebounded nearly 500 points in opening session on Tuesday as global investors calmed on no further escalation in the mid-east tensions.

After hitting a high of 41,135.47, the 30-share BSE index was trading 450 points or 1.11 per cent higher at 41,126.63. Similarly, the broader NSE Nifty rallied 132.25 points or 1.10 per cent to 12,125.30.

HDFC Bank was the gainer in the Sensex pack, rallying up to 2.16 per cent, followed by IndusInd Bank, Reliance Industries, Tata Steel, SBI and Axis Bank.

On the other hand, Tech Mahindra, TCS, Infosys and HCL Tech were trading in the red.

In the previous session, the 30-share gauge ended at 40,676.63, dropping of 787.98 points, or 1.90 per cent. Similarly, the Nifty closed at 11,993.05, falling by 233.60 points, or 1.91 per cent.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 103.84 crore, and domestic institutional investors offloaded shares worth Rs 23.70 crore on Monday, data available with stock exchanges showed.

According to traders, domestic investors followed Asian stocks that rebounded after a day of no escalation in the US-Iran tussle.

The Pentagon on Monday distanced itself from US President Donald Trump's assertions that he would bomb Iranian cultural sites despite international prohibitions on such attacks.

Following the news, Brent crude futures fell 1.20 per cent to USD 68.08.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading in the green.

Exchanges on Wall Street too ended on a positive note on Monday.

Meanwhile, the rupee appreciated 20 paise to 71.73 against the US dollar in morning session.