NEW DELHI: Indian equity benchmarks registered a gap-up opening on Wednesday as markets across globe continued showing confidence over ongoing trade talks between US and China.
Asian shares climbed to a multi-week high, with Hong Kong's Hang Seng, Japan's Nikkei 225 and China's SSE Composite Index logging healthy gains of up to 2 per cent.A World Bank report also influenced mood which forecasted that India may lead global growth during current fiscal.
The World Bank on Tuesday projected global growth may moderate from 3 per cent last year to 2.9 per cent this year, but India's GDP will grow at 7.3 per cent during 2018-19.
Sensex surged about 270 points in early deals, but cooled off a little on selling in select heavyweights, including IndusInd Bank, HCL Tech, Tata Steel, State Bank of India and YES Bank.
An extended rally in crude oil prices in global markets dragged rupee lower roiling sentiment slightly.
Around 9:30 am, Sensex was 207 points up at 36,188, with 23 stocks in green and eight in red.The Nifty pack was 53 points up at 10,856 at that time, with 37 stocks advancing and 13 declining.The BSE Midcap and Smallcap, too, rose about half-a-percent.Among sectoral indices on BSE, telecom pack slipped on losses in Bharti Infratel, Vodafone Idea and HFCL.
Out of 16 components in pack, nine were in green and seven in red.
BSE IT, rising over 1 per cent, was leading pack of sectoral gainers.
Heavyweights Infosys, TCS, Tech Mahindra and Wipro were trading with gains amid rupee's depreciation against US dollar.Infosys, Axis Bank, Tata Motors, TCS, Maruti Suzuki, NTPC and Sun Pharma were leading among Sensex gainers.Shares of IndusInd Bank slipped nearly 1 per cent ahead of its December quarter results.
Analysts believe while recognition of non-performing loans by companies under ILFS group would begin across banks, IndusInd Bank may take biggest hit.
This could put pressure on lender's net interest margin (NIM).