The market further pared gains in early afternoon trade. At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 131.84 points or 0.37% at 36,112.77. The Nifty 50 index was up 34.10 points or 0.32% at 10,836.25. The Sensex was trading above 36,000 mark. The Nifty was trading above 10,800 mark. Investors sentiment was strong amid a firm trend overseas, supported by rising hopes that the US and China would strike a deal to end their trade war.
Indices opened higher and continued trading on a firm note in morning trade. Indices trimmed gains in mid-morning trade. The market further pared gains in early afternoon trade.
Among secondary barometers, the BSE Mid-Cap index was up 0.02%. The BSE Small-Cap index was up 0.06%.
The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1099 shares rose and 1144 shares fell. A total of 144 shares were unchanged.
Most cement shares declined. Ambuja Cements (down 1.28%), UltraTech Cement (down 1.04%) and ACC (down 0.3%), edged lower.
Grasim Industries was up 0.48%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Most telecom shares declined. Reliance Communications (down 1.36%), Tata Teleservices (Maharashtra) (down 1.02%) and Vodafone Idea (down 0.81%), edged lower. Bharti Airtel (up 0.87%) and MTNL (up 0.97%), edged higher.
Meanwhile, India's GDP is expected to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years, the World Bank has forecast, attributing it to an upswing in consumption and investment growth. The World Bank said India will continue to be the fastest growing major economy in the world.
Overseas, Asian shares rose on Wednesday, as investors remained cautiously optimistic Beijing and Washington could move forward on a trade deal. Investors will be watching out for developments on the US-China trade front after negotiations between the world's two largest economies extended into an unscheduled third day.
US stocks closed higher for a third straight session Tuesday as optimism over US-China trade talks bolstered sentiment.
On the US data front, small-business optimism fell in December, according to the National Federation of Independent Business small-business optimism index, which decreased 0.4 points to a seasonally adjusted level of 104.4, its lowest in 14 months.
The number of new job openings fell to its lowest level since June, at 6.89 million, down from 7.13 million in October, the Labor Department reported Tuesday.
The Census Bureau was scheduled to release data on the trade deficit Tuesday morning, but the release was delayed due to the government shutdown.
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