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Benchmark indices continue to remain firm led by FMCG, financials and metal shares.
At 10:20AM, the 30-share Sensex was up 180 points at 18,800 and the 50-share Nifty gained 49 points at 5,522 levels.
On the global front, Asian shares climbed to a two-week high on Monday, and the Australian dollar and copper gained, as China said its manufacturing expanded in August at the fastest pace in more than a year.
A delay in potential U.S. military action against Syria, as U.S. President Barack Obama sought Congressional support, also helped boost short-term risk appetite.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.9 percent, hitting a two-week high and extending a 2.1% rise in the previous two sessions, while Hong Kong's Hang Seng Index climbed 2%. Japan's benchmark Nikkei gained 0.9%.
Back home, the rupee weakened marginally because of the weak GDP numbers that came in on Friday after market hour.
Top foreign investment banks HSBC and Nomura have downgraded their Gross Domestic Product (GDP) growth estimates for India after the economy grew lower-than-expected in the June quarter.
While HSBC cut its GDP estimates for the country to 4% from 5.5% in 2013-14, Nomura lowered its expectations to 4.2% from 5%, retaining its negative outlook for the economy over the next three to six months.
On the sectoral front, BSE FMCG, Metal and Consumer Durables indices have surged by 2% each followed by counters like Banks, Healthcare, Realty, PSU, Capital Goods and Oil & Gas, all gaining by 1% each.
Metal shares have surged after robust China’s manufacturing data. China’s economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August. Tata Steel and JSPL have gained between 1-2%.
FMCG majors like ITC and HUL have risen between 2-3%.
Financial shares have rebounded after witnessing sharp fall during last few trading sessions. HDFC, ICICI Bank and SBI have gained between 1-2%.
Sesa Goa is the top Sensex gainer, up over 3%.
Sun Pharmaceutical Industries is trading higher by 2% at Rs 528 on reports that its subsidiary Taro pharma has entered into an agreement with NovaBiotics to license and codevelop Novexatin, a topical anti-fungal drug to cure toe-nail infections.
Tata Motors is trading lower by 2% at Rs 293 in early morning deals after the company continued its poor sales performance during the month of August 2013 as the domestic commercial (CV) and passenger vehicle (PV) volumes maintained the downward trajectory following weak consumer demand and slowdown in industrial activity.
Among other shares, Mahindra and Mahindra (M&M) Financial Services has rallied 6% to Rs 267, extending its Friday’s over 8% surge on inclusion in the MSCI India Index with effect from today.
Jet Airways (India) has rallied 6% to Rs 309 on reports that Abu Dhabi-based Etihad Airways has extend a deadline to buy a 24% stake in Jet till the end of September as it expects the deal to be cleared by Indian authorities imminently.
The market breadth in BSE remains positive with 1,009 shares advancing and 425 shares declining.
