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Markets continued to trade firm after the first hour of trade led by index heavyweight ITC and financial companies having insurance subsidiaries.
At 10:40AM, the 30-share Sensex was up 196 points at 28,855 and the 50-share Nifty was up 58 points at 8,758.
" Markets are expected to find support at lower levels. For the Sensex resistance is at 28714 above 28812, 28878 and 28961. Support is at 28613 below 28584 and 28494. For the Nifty resistance is seen at 8718 above 8742 and 8761 while support is seen at 8682 below 8677 and 8647," Geojit BNP Paribas Financial Services said in a technical note.
Foreign institutional investors were net sellers in equities to the tune of Rs 445 crore while Domestic institutional investors were also net sellers to the tune of Rs 339 crore, as per provisional stock exchange data.
Investors would keenly await data on industrial production for January and consumer price index for February scheduled to be announced today besides keeping a tab on development regarding coal and mines related Bills and insurance amendment bills sent by the government to the Rajya Sabha
Further, India's economy is recovering and its ability to withstand external shocks has improved, but growth is likely to fall short of government targets, the International Monetary Fund said on Wednesday.
In an annual report, the IMF forecast that Asia's third-largest economy would grow by 7.5% in the 2015/16 fiscal year that starts on April 1, up from 7.2 percent in the year now ending.
Most Asian shares were trading firm after the surprising rate cut by Bank of Koreas. Stocks in Japan were trading higher led by exporters on the back of a weaker yen. The benchmark Nikkei was up 1.3% while the Shanghai Composite was also up 1.3%. Hang Seng was up 0.4% while Straits Times was trading with marginal losses.
BSE Power index was the top sectoral gainer up 2% followed by FMCG, Auto, Bankex, Consumer Durables and Capital Goods among others. IT index was the sole loser.
FMCG major ITC was up 2.6% amid media reports that the company would hike cigarette prices on select brands.
Maruti Suzuki was up 1.6%. Maruti Suzuki on Tuesday said it would be recalling 33,098 vehicles, including its popular models Alto 800 and Alto K10. According to the company’s statement to the stock exchanges, the recall is to inspect and replace the ‘right hand door latch assembly. Tata Motors was up nearly 2% after the industry body SIAM said that the industry likely to see demand revival for passenger and utility vehicles.
Companies such as HDFC, SBI and ICICI Bank were up 0.5-1% each which have insurance subsidiaries on expectations that the insurance amendment Bill would be passed by the Rajya Sabha later today.
Hindalco rebounded after the sharp fall on Wednesday following a scrutiny over the coal block allocations. The stock was up 1.2%.
Other gainers include, NTPC up 6% while L&T was up 1%.
Among other shares, Shares of Steel Strips Wheels Limited (SSWL) were up 2%, extending its previous day’s 9% rally, after the company said it has bagged an exports order from Renault Russia and European aftermarket.
Shares of Den Networks gained 4% after the company engaged in broadcasting and cable TV business said that its board has approved a proposal to increase foreign investment limit to 74% from the existing limit of 49% of the issued and fully paid-up share capital of the company.
Shares of Mold-Tek Technologies has soared 16% to Rs 229, extending its month long rally on BSE, after reporting a more than 100% growth in its consolidated net profit for the third quarter ended December 31, 2014 (Q3).
In the broader market, BSE Mid-cap and Small-cap indices were up nearly 1% each.
Market breadth was strong with 1,406 gainers and 698 losers on the BSE.
