Markets remain positive; broader markets outperform

Benchmark indices continue to trade higher amid volatility led by Asian markets along with oil and IT shares leading the gains.

By 10:20, the Sensex was higher by 54 points at 20,746 mark and the Nifty gained by 18 points at 6,180 levels.

Foreign institutional investors (FIIs) sold shares worth a net Rs 567.02 crore on Tuesday as per provisional data from the stock exchanges.

Adds Ranak Merchant, Technical Analyst - Strategies, Sushil Financial Services, “Nifty broke below its bear turning point for the month (6259 on Nifty spot) last week and slipped below its 50 day EMA of 6170 on closing basis in yesterday’s session. 6130-6170 zone offers good support to the index, it being the previous double bottom on Weekly Charts, from where markets had witnessed a decent bounce. Watch 6130 for support breach of which could see Nifty find its next support near 6070 levels.”

On the global front, Asian markets got a hand up on Wednesday after strong trade data boosted expectations for US growth while a lessening of sovereign strains in Europe lifted stocks there to the highest since 2008.

Japan's Nikkei led the way with a rise of 1.1%, though some other regional markets remain out of favour as funds flock to assets in the western world.

Back home, the rupee is trading at 62.20/21 versus its close of 62.30/31 on Tuesday, tracking gains in Asian stocks and currencies.

On the sectoral front, BSE Oil & Gas, IT and Healthcare indices have gained by 1% each followed by counters like Realty, Power, Metal, Consumer Durables and Auto, all gaining marginally.  However, banks and capital goods sectors are trading marginally negative.

The main gainers on the Sensex at this hour include Sun Pharma, Cipla, Tata Power, Hindalco, TCS, GAIL, NTPC, Coal India and RIL.

On the losing side, Axis Bank, BHEL, Sesa Sterlite, ITC and Maruti Suzuki have declined between 0.7-1.3%.

Shares of Financial Technologies India (FTIL) is locked in upper circuit for second straight day, up 10% at Rs 299 on the BSE, ahead of the Bombay High Court (HC) hearing on the petition challenging Forward Market Commission (FMC) order.

Mastek has soared 13% to Rs 206 on BSE ahead of board meeting today to consider the share buyback proposal.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up by nearly 1% each.

The market breadth in BSE remains positive with 1,141 shares advancing and 592 shares declining.