 "Sensex vaults 500 points; auto shares zoom")
Markets continue to hold on to its gains on account of favourable macroeconomic parameters and above normal monsoon forecast. Also, strength among the global peers amid rally in commodity and crude oil prices on reports of an Russia-Saudi Arabia agreement to freeze output, further buoyed sentiment.
At 2:45 pm, the S&P BSE Sensex surged 515 points to 25,661 and Nifty50 was up 153 points at 7,861.
Top gainers in the Sensex pack include M&M, ICICI Bank, Hindalco, BHEL and Bajaj Auto up between 4%-8.5%.
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(updated at 12:56 pm) Read more from our special coverage on "MARKETS"
Benchmark indices continue to hold on to their gains supported by strong buying among financials and agro based stocks on account of favourable macroeconomic parameters and above normal monsoon forecast.
At 12:56 pm, the S&P BSE Sensex surged 429 points to 25,579 and Nifty50 was up 131 points at 7,840.
In the currency front, the rupee trimmed its initial gains, but was still trading up by 5 paise to 66.38 against the American currency in late morning deals on bouts of dollar selling from banks and exporters amid rally in equities.
Besides, lower remittances from Gulf nations, which have been hit hard by the slump in oil prices, will cut the benefits of cheaper oil imports for several Asia Pacific countries including India, Moody's Investors Service said today.
KEY STOCKS
Banking shares are trading higher by up to 4% on the bourses after the IIP numbers have given a positive surprise with a growth of 2% for the month of February 2016.
Retail inflation, measured by the Consumer Price Index (CPI), also eased to a six-month low of 4.83% cent in March from 5.26% in February, according to data released by the Central Statistics Office (CSO) on Tuesday after market hours.
ICICI Bank, State Bank of India, Kotak Mahindra Bank and Union Bank of India were up more than 2% each, while Bank of Baroda, Axis Bank, Punjab National Bank, HDFC Bank, Yes Bank, Oriental Bank of Commerce, Allahabad Bank, Andhra Bank and Bank of India up 1%-2% on the NSE.
Shares of companies whose business is related to the rural sector extended gains for the second straight day after India's weather department forecasted above normal monsoon this year.
Swaraj Engines (12% at Rs 1,126), Mahindra & Mahindra (up 7% at Rs 1,321) and VST Tillers Tractors (4% at Rs 1,783) from automobiles, Insecticides (6% at Rs 425), Kaveri Seed Company (6% at Rs 404), PI Industries (5% at Rs 643), Coromandel International (5% at Rs 219), Tata Chemicals (4% at Rs 390) and Rallis India (4% at Rs 190) from fertilizers and agrochemicals were up more than 3% each on the BSE.
Shares of Bharti Airtel were up 2% at Rs 356 on the Bombay Stock Exchange after the telecom major garnered nearly 50% of the total subscriptions in the month of March 2016.
India's Tata Steel and Germany's Thyssenkrupp are holding high-level talks on the possibility of combining their European steel operations in a joint venture, but are also looking at other options, German daily Rheinische Post said on Wednesday. Tata Steel has gained over 3%.
Shares of Madhucon Projects were up over 5% at Rs 56 on the Bombay Stock Exchange after the company completed its stake sale in Madhucon Agra-Jaipur Expressways Ltd (MAJEL).