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The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 93.02.

ICICI Bank was the top gainer, surging around 3 per cent, followed by Infosys, HCL Tech, Axis Bank, Bharti Airtel and Bajaj Finance.

The market-heavyweight stock closed at Rs 2,029, a gain of 3.78 per cent on BSE

Rising coronavirus caseloads across the globe have left investors cautious as governments impose restrictions to contain outbreaks.

On the Sensex chart, IndusInd Bank, Tata Steel, Infosys, ONGC, Kotak Bank, NTPC and Bharti Airtel were among prominent gainers.

"Rising number of COVID-19 cases is prompting worries about a new wave of lockdowns in Europe and hopes from US stimulus spending are fading", Reliance Securities said in a research note.

The S&P 500 rose 1.6% to 3,534.22, with Big Tech stocks, including Apple and Microsoft, powering much of the gains.

Dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.13 per cent down at 93.39.