 "Markets extend gains; Nifty reclaims 8,700")
Markets extended gains after the first hour of trade with pharma and capital goods shares leading the gains along with select index heavyweights.
At 10:35AM, the 30-share Sensex was up 289 points at 28,727 and the 50-share Nifty was up 83 points at 8,716
"The market is likely to trade sideways to positive. Higher level profit booking is expected. For the Sensex resistance is seen at 28507 above 28665 and more. support is at 28403 below 28358 and 28278. For the Nifty resistance is at 86505 above 8696 and more. Support is at 8612 below 8600 and 8584," Geojit BNP Paribas Financial Services said in a technical note.
Mortgage lender HDFC was the top gainer up 2% while Tata Motors 3.2% contributing the most to the Sensex gains.
Other gainers include, ITC, HDFC Bank, L&T, BHEL, Dr Reddy's Labs and Sun Pharma among others.
Among other shares, Amtek Auto has rallied more than 5% at Rs 156 on the National Stock Exchange (NSE) in early morning trade after the company said it has acquired German based Scholz Edelstahl GmbH through its 100% Singapore based subsidiary Amtek Precision Engineering Pte. Limited.
Shares of Gulf Oil Corporation has soared 17% to Rs 165 on the Bombay Stock Exchange (BSE) after a huge block deal executed on the counter.
Shares of Granules India has rallied 12% to Rs 1,017, also its record high on the BSE, after the pharmaceutical company said that US health regulator FDA (Food and Drug Administration) has inspected its Gagillapur manufacturing facility near Hyderabad and did not find any deviation from good manufacturing norms.
Sunil Hitech Engineers has rallied 8% to Rs 150 on the National Stock Exchange (NSE) after the company announced that it has bagged road project worth Rs 122.02 crore.
In the broader market, the BSE Mid-cap and Small-cap were up over 1% each.
Market breadth was strong with 1,430 gainers and 631 losers on the BSE.
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(Updated at 9:30AM)
Markets opened higher on tracking firm global cues with metal and pharma shares leading the gains. Meanwhile, investors are likely to turn cautious ahead of the US Federal Reserve at its two-day policy meet which begins later today.
At 9:30AM, the 30-share Sensex was up 147 points at 28,585 and the 50-share Nifty was up 41 points at 8,674.
Meanwhile, foreign institutional investors were net sellers in equities to the tune of Rs 763 crore on Monday, as per provisional stock exchange data.
Asian shares got a boost on Tuesday from Wall Street's rise, as investors positioned for the possibility that weaker-than-expected U.S. data will prompt the Federal Reserve to adopt a cautious stance this week.
Crude oil remained under pressure from a global supply glut, after U.S. crude CLc1 lost as much as 4 percent in the previous session to hit a six-year low. It was last down about 0.4 percent at $43.72 a barrel.
The Federal Open Market Committee is scheduled to begin its two-day policy meeting later on Tuesday, and many analysts had expected the central bank to drop the word "patient" from its formal statement on the timing of its first interest rate increase since 2006. Economists polled by Reuters split almost evenly on whether a rate increase will come in June or later in the year.
But downbeat data on U.S. manufacturing, industrial output and housing on Monday offered the Fed a reason to toe a cautious line on policy.
BSE Healthcare, Auto and Capital Goods indices were the top gainers up over 0.8% each followed by Bankex and FMCG among others.
Tata Motors, HDFC, HDFC Bank, ITC and L&T contributed the most to the Sensex gains in early trades.
In the pharma segment, Dr Reddy's Labs, Sun Pharma and Cipla were up 0.4-2% each.