Broader markets outperform; BSE Mid-cap index up 1%

The BSE Mid-cap and Small-cap indices were up nearly 1% each

The broader markets outperformed the benchmark indices as investors bought mid-cap and small-cap stocks that are available at attractive valuations.

At 10:40AM, the 30-share Sensex was up 50 points at 28,613 and the 50-share Nifty was up 17 points at 8,581.

In the broader market, the BSE Mid-cap and Small-cap indices were 0.7-0.1% each.

Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 474 crore on Thursday, as per provisional stock exchange data.

The Indian rupee was trading higher at Rs 61.84 to the US dollar compared to the  previous close of Rs 61.92 as most Asian currencies have firmed up against the US currency.

Asian stocks were trading mixed with Chinese shares witnessing profit taking. Nikkei was trading marginally higher at 0.1% while Straits Times was up 0.5% and Hang Seng gained 0.7%.

BSE Capital Goods index was the top sectoral gainer up 0.9% followed by FMCG and Metal indices among others. However, IT index was the sole loser down 0.8%.

Index heavyweights Reliance Industries and ITC were up 0.8-0.9% contributing the most to gains on the Sensex.

BHEL was up 0.6% after the company commissioned the sixth unit of 412 MW Rampur hydel power project in Himachal Pradesh. L&T was up 0.6%. The state-owned equipment maker has now completed commissioning all the six units -- each having 68.67 MW generation capacity -- of the plant, operated by SJVN Ltd.The project is located on the Satluj river. L&T was up 0.9%.

ICICI Bank, HDFC, Axis Bank, M&M and Bharti Airtel were among the other Sensex gainers.

Among IT majors Infosys, TCS and Wipro were down 0.6-1.5% each.

SAIL was down 1.8% as the government will kick-start its divestment process by selling its stake in the steel major. The floor price for disinvestment in Steel Authority of India Limited (SAIL) will be set at Rs 83 a share, slightly lower than its closing price of Rs 83.35 on the BSE on Thursday, according to an exchange filing.

Among other shares, Shares of Mastek were up over 4% at Rs 278 after the company announced that its overseas arm Mastek UK Ltd has won a contract from Unum. Unum is one of the leading providers of financial protection in the United Kingdom.

Market breadth was positive with 1,102 gainers and 468 losers on the BSE.