The key Indian equity indices traded on a positive noted on Wednesday morning with the BSE Sensex gaining over 350 points. Healthy buying was seen in auto and banking stocks.
Around 10.25 a.m., Sensex was trading at 49,300.42, higher by 356.28 points or 0.73 per cent from its previous close of 48,944.14. It opened at 49,066.64 and has so far touched an intra-day high of 49,354.82 points.
The Nifty50 on the National Stock Exchange was trading at 14,742.70, higher by 89.65 points or 0.61 per cent from its previous close.
Manish Hathiramani, technical analyst with Deen Dayal Investments said: "The Index has crossed its resistance patch of 14,500-14,700 and is trading above 14,700 since the opening. If we can keep above this level on a closing basis as well, we should be headed to 15,000-15,100 levels."
"A closing past 14,700 will signal a shift in the trend from sideways to bullish and thereafter dips or intra-day corrections can be utilised to buy into this market," he said.
India's benchmark equity indices ended higher for the second day in a row on Tuesday as optimism grew over the nation's accelerated vaccination programme to control the world's largest surge in coronavirus infections. Both indices opened higher and kept making upwards till the close.
Domestically, all sectors ended in the positive led by metals, capital goods and consumer durables. The S&P BSE Sensex closed at 48,944.14, higher by 557.63 points, or 1.15 per cent, from its previous close. The Nifty50 on the National Stock Exchange ended the day's trade at 14,653.05, up 168.05 points, or 1.16 per cent, from its previous close.
Globally, stocks were mildly negative on Tuesday morning as markets prepared for the US Federal Reserve's two-day meeting, which began on Tuesday, and investors digested a slew of earnings. The US central bank is widely expected to keep rates on hold and asset purchases unchanged, but investors will pay close attention to comments from Chairman Jerome Powell, particularly regarding inflation.
"Optimism that the US decision to offer vaccine support will aid the nation's effort to control the world's largest surge in coronavirus infections helped sentiments," said Deepak Jasani, Head of Retail Research at HDFC Securities.
Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "With various steps being taken by the government to curb the spike and with vaccination opening for all from May 1, there is hope that the current Covid situation may come under control by mid-May and thus the hit on asset quality might not be that adverse."
Vinod Nair, Head of Research at Geojit Financial Services, said: "Healthy buying across sectors led by banking, metals and specialty chemicals is leading the rally. Stocks are up in anticipation of good quarterly earnings and improved outlook due to a hike in stock prices and demand. Mid and small caps are outperforming the main benchmark."
"This is though FIIs continue to be net sellers in the domestic market, due to weak Asian markets ahead of the Fed meeting, it was more than compensated by DIIs and retail investors."