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Benchmark indices continue to maintain the positive trend amid volatility led by buying among rate-sensitive shares.
By 1130, Sensex gained by 108 points at 19,718, and the Nifty was up 34 points at 5,973 levels.
On the global front, Japan's Nikkei share average rose on Tuesday morning as investors scooped up battered stocks such as financials, offsetting weakness in export shares after the yen firmed overnight.
The Nikkei rose 0.6% to 13,337.35 by the midday break after bobbing in and out of negative territory in choppy trade. It dropped as low as 13,060.94 earlier. Hopes for further pension fund buying also lent a firmer tone to the market.
The Nikkei has fallen 16.3% from a 5-1/2 year peak hit last month, hurt by worries over slowing growth in China and concern that the U.S. Federal Reserve may scale back its stimulus policies earlier than the market had expected.
Back home, the rupee today trimmed its early gains but was still quoting higher by 10 paise in late morning deals to 56.66 against dollar on fresh selling of dollars by banks and exporters. India is likely to give new bank licences by March 31, 2014, Rajiv Takru, secretary of financial services, told a local news channel on Tuesday.
On Monday, the Reserve Bank of India said it had extended the validity of in-principle approval for new banks to 18 months from one year.
On the sectoral front, BSE Capital Goods and Healthcare indices have surged by almost 2% each followed by counters like Oil & gas, Power, PSU, Realty and Banks, all gaining by 1% each. However, BSE IT index has declined by nearly 1%.
L&T has surged by almost 3%. Select non-banking financial companies which are likely to foray into the banking space gained in early trades today after the Reserve Bank of India on Monday allowed new banking licensees to set up banks. L&T Finance Holdings has surged by almost 4%.
Pharma majors like Cipla and Dr Reddy’s Lab have gained by 2% each.
Other notable gainers are Tata Steel, Hero MOto, M&M, ONGC and NTPC.
The market breadth in BSE remains positive with 1,075 shares advancing and 788 shares declining.
