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Benchmark indices are trading higher tracking firm Asian markets along with IT shares leading the gains.
At 11:00 AM, the Sensex was higher by 91 points at 22,537 mark and the Nifty surged by 24 points at 6,745 levels.
Adds Ravi Nathani, Founder, Sr. Technical analyst at Nsetoday.com, “Best trading strategy for Index traders would be to buy on dips with a target expected 6780.”
Asian share markets added to their recent rally on Wednesday as investors chose to accentuate the positive in a mixed bag of global economic data, pressuring the safe haven yen to a 10-week trough.
Even sluggishness in China is now considered favorably since it adds to the case for stimulus, and there are signs Beijing is hastening infrastructure spending in response.
Trading was cautious, however, ahead of Thursday's meeting of the European Central Bank and Friday's U.S. jobs numbers, both of which could move markets in major ways.
Foreign institutional investors (FIIs) bought shares worth a net Rs 385.66 crore on Tuesday, 1 April 2014, as per provisional data from the stock exchanges.
The rupee is trading at 59.70/71 versus Friday's close of 59.91/92 as bunched-up dollar inflows and record high domestic shares aid sentiment. The unit rose to as high as 59.60, its strongest since July 30.
On the sectoral front, BSE Healthcare, IT and TECk indices have surged by over 1% followed by counters like Realty, Power, Oil & Gas, Consumer Durables and Auto, all gaining by nearly 1% each. However, BSE FMCG index has slipped by 1%.
The main gainers on the Sensex at this hour include Bharti Airtel, ICICI Bank, Tata Motors, Wipro, Cipla, RIL, NTPC Infosys and Dr Reddy’s Lab.
On the losing side, ITC, Hindalco, Axis Bank, Sesa Sterlite and BHEL have slumped between 1-2%.
Index heavyweight Reliance Industries (RIL) has risen after the company announced that the Supreme Court has appointed an international arbitrator in the KG D6 issue.
Axis Bank has declined 1.07% after the Reserve Bank of India after market hours on Tuesday notified that the no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of Foreign Institutional Investors (FIIs) as foreign share holding by FIIs in Axis Bank has crossed the overall limit of 49% of its paid-up capital.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained by nearly 1% each.
The market breadth in BSE remains firm with 1,438 shares advancing and 609 shares declining.
