NEW DELHI: Domestic markets took heart from gains in US stocks in overnight trade, extending their gains to Wednesday's session.
Improving global sentiment and renewed hopes of a trade deal lent some confidence to investors on Dalal Street.
US President Donald Trump insisted on Tuesday that trade talks with China have not collapsed and called the widening US-China tariff war a little squabble, even as his administration readies 25 per cent duties on all remaining Chinese imports.
Expanding on a stream of optimistic early morning tweets, Trump told reporters that he has a very good dialogue going with China and touted his extraordinary relationship with Chinese President Xi Jinping.
Soothing oil prices contributed to the upbeat mood.
Oil eased on Wednesday after closely watched data showed a surprise rise in US crude stockpiles, but prices were supported by mounting tensions in the Middle East, Reuters reported.Rupee too rose against the US dollar amid ease in trade tensions between the US and China.
The domestic unit rose 23 paise against the greenback to 70.22.At around 9:30 am, Sensex was up 102 points or 0.27 per cent at 37,420.
In the Sensex pack of stocks, 18 advanced while 12 declined.
Nifty50 rose 32 points or 0.28 per cent to 11,254.
Among Nifty stocks, 29 stocks gained, 20 declined while one remained unchanged.
"The index has paused the ongoing correction by maintaining the rhythm of not correcting more than 10 to 11 sessions in a row, since July 2013.
Therefore, follow through strength above 11,300 would be required to extend pullback towards 11,500 or else consolidation in the range of 11,000 11,300 as volatility ahead of key event of General Election 2019 would offer buying opportunity," said ICICI Securities.The markets would keep an eye on stocks such as Lupin, Torrent Power, Manappuram Finance, Adani Green, Jubilant Foodworks, KPIT Tech, Taj GVK Hotels, Central Bank, Amara Raja Batteries, Zuari Agro Chemicals and Aditya Birla Fashion which will report their March quarter results today.
In the 30-pack Sensex, HCL Tech was the biggest gainer followed by Powergrid, Tata Steel, Vedanta, Axis Bank and HDFC Bank.On the other hand, YES Bank was the biggest loser, falling over 4 per cent.
Former Reserve Bank Deputy Governor R Gandhi has been appointed as additional director on the board of the private lender.Other losers were Bharti Airtel, Sun Pharma, Kotak Mahindra Bank and Bajaj Auto.Off the main board, shares of Jet Airways sulked, shedding 5 per cent after its top brass took an exit.
Lenders to Jet Airways and Etihad Airways have approached the Hinduja Group offering a stake in the grounded airline, said people close to the development, adding that exploratory talks are on.
Meanwhile, four senior executives, including chief executive Vinay Dube and his deputy Amit Agarwal, have quit the ailing airline.
BSE Midcap and BSE Smallcap traded in the green, gaining 0.38 per cent and 0.48 per cent, respectively.On the BSE Sectoral front, barring telecom all other sectors showed some strength.
Oil Gas was the biggest gainer, up over 1 per cent led by Indian Oil corporation.Meanwhile, Indias wholesale inflation eased in April on cheaper fuel and manufactured items, even as the pace of price rise quickened in the case of food articles, according to data released by the Commerce and Industry Ministry on Tuesday.
The Wholesale Price Index (WPI)-based inflation was pegged at 3.07 per cent in April, down from 3.18 per cent in the previous month and 3.62 per cent in April 2018.