Equity benchmark Sensex surged over 400 points in early trade on Wednesday, tracking gains in index majors Reliance Industries, HDFC Bank and ICICI Bank amid a positive trend in global markets.
The 30-share index jumped 449.23 points or 0.80 per cent to 56,768.24 in the opening trade. Similarly, the Nifty advanced 134.95 points or 0.80 per cent to 16,905.80.
Top gainers:
IndusInd Bank was the top gainer in the Sensex pack, rising around 2 per cent, followed by Reliance Industries, Tata Steel and M&M.
Top losers:
On the other hand, PowerGrid, Asian Paints, Wipro and Nestle India were among the laggards.
In the previous session, the 30-share equity benchmark rose 497 points or 0.89 per cent to end at 56,319.01, and Nifty surged 156.65 points or 0.94 per cent to 16,770.85.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 1,209.82 crore on Tuesday, according to stock exchange data.
“The positive global backdrop provided by the recovery in the US and European markets might aid the bulls, but this is not sufficient to take the markets much higher. Nifty is unlikely to reach near the October high of 18,604 anytime soon,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Even though FII selling has come down, they are likely to press sale if the market goes up meaningfully, he added.
Rupee status
In the meantime, the rupee appreciated 11 paise to 75.48 against the US dollar in opening trade on Wednesday, tracking a positive trend in domestic equities.
However, rising crude prices in the international market and continued foreign fund outflows restricted the local unit, traders said.
At the interbank foreign exchange, the rupee opened slightly strong at 75.56 and gained further ground to quote 75.48 against the American dollar in early deals, a rise of 11 paise from the last close.
In the previous session, the rupee had settled at 75.59 against the greenback.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with gains in mid-session deals.
Stock exchanges in the US ended on a positive note in the overnight session.
Meanwhile, international oil benchmark Brent crude rose 0.24 per cent to $74.16 per barrel.
