Markets continue to edge higher in the morning deals on the back of positive global cues coupled with the gains among the index heavyweights. The Sensex advanced 92 points at 17,945 and the Nifty added 25 points at 5,415.
Meanwhile, the smallcap and the midcap indices gained 0.7-0.8% , outperforming the Sensex which stepped up 0.5%.
The rupee rose by 11 paise to 55.23 against the dollar in early trade today on the Interbank Foreign Exchange as the American unit weakened against euro and other currencies overseas.
Among the sectoral indices, Power index pared its opening gains and slipped into the red, losing 0.2%. Meanwhile, Auto, Realty, Bankex and Metal indices gained nearly 1% each.
Airline shares jumped on reports that the government is preparing measures to potentially allow foreign investment in the sector. Under current rules, foreign airlines are barred from buying stakes in domestic carriers, although foreign investors are allowed to hold a cumulative 49%. SpiceJet shares rose 5.3%. Kingfisher gained 2.3% and Jet Airways edged up 1.8%.
Among other stocks, Jindal Steel and Power Limited (JSPL) was trading lower by 3% at Rs 324, its lowest level since May 20, 2009 on the Bombay Stock Exchange. The stock of Naveen Jindal Group Company is under pressure for the past couple of days on concerns of de-allocation of coal blocks.
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(Updated at 9:29)
Markets started the day in the green with the Sensex up 77 points at 17,930 and the Nifty added 18 points to open at 5,408. Gains in heavyweights like ICICI Bank, Tata Motors and L&T aided the upmove.
In the broader markets, the midcap and the smallcap indices gained 0.4% each which is in line with the Sensex.
According to technical analysts, the NSE index is likely to seek support around 5,365-5,350, while face resistance around 5,415-5,430.
Overnight, the Dow industrials closed at the highest level in nearly five years on Tuesday in a lightly traded session before key decisions in Germany and the United States that could give markets a further boost. The Dow Jones industrial average ended up 0.52%, to 13,323, the Standard & Poor's 500 Index closed up 0.31%, to 1,433 and the Nasdaq Composite Index added 0.02%, to 3,104.
Asian shares edged higher on Wednesday as investors remained cautiously optimistic a German court would approve the legality of the euro zone's bailout fund later in the day and the U.S. Federal Reserve may deliver further stimulus measures this week. Hang Seng, Nikkei, Kospi Composite and Taiwan Weighted advanced 1% each and were the top gainers among the Asian markets.
All the sectoral indices on the BSE started in the green. Metal, Realty, Health care and Bankex started up 0.6-0.8% and were the top gainers in the opening trades. Auto, Consumer Durables, FMCG and IT indices were also up 0.4-0.5%.
Tata Motors, Sun Pharma, Sterlite, Tata Steel and ICICI Bank up 1% each were the top gainers among the Sensex stocks. Coal India,Hindalco, L&T, SBI,Hindustan Unilever, Tata Power,Dr Reddys Lab and Reliance Industries up 0.5-0.8% were the other notable gainers.
Meanwhile, Jindal Steel,Hero MotoCorp and HDFC were the prominent losers, down 0.3-1%
Among individual stock, Siemens Limited was trading lower by 3% at Rs 677 on reports that Siemens AG, the promoter of the company, may sell part of its holding. A Reuters report suggested that nearly 4 million shares representing 1.2% stake of Siemens India unit, in which the parent has a 75% stake, are being sold to investors in the price band of Rs 649.15 to Rs 698 a share, according to the term sheet
The market breadth was very positive due to the strength in the broader markets. 877 stocks advanced while 223 stocks declined on the BSE.