Indian equities trade with positive bias, Sensex closes over 400 points higher

Equity indices edged higher on Wednesday following cues from other Asian stocks that rallied to four-and-a-half month highs.

Virtually all sectoral indices traded in the green led by realty, energy, metal, infrastructure, pharma and FMCG scrips.

The BSE S&P Sensex closed 404 points higher at 35,756 while the Nifty 50 closed 131 points up at 10,735.

Shares of banking and financial stocks rose with gains witnessed in ICICI Bank, Central Bank, Indian Bank, IDBI Bank, and Canara Bank. The banking index rallied after reports said that the government may infuse over Rs 47,000 crore in 12 public sector banks in the next recapitalisation tranche.

Besides, energy stocks such as Reliance Industries Ltd were among the biggest gainers.

But heavy selling pressure was seen in the stocks of Anil Dhirubhai Ambani Group (ADAG) with Reliance Communications and Reliance Capital dropping as the Supreme Court held Anil Ambani guilty of contempt in the Ericsson case.

Shares of IL&FS also dropped as the Enforcement Directorate (ED) carried out searches in connection with the IL&FS payment default.

The overall mood in markets was bolstered by gains in broader Asian markets amid optimism over on-going US-China trade talks in Washington. Asian stocks advanced to four-and-a-half month highs as investors were optimistic about talks between US and Chinese trade negotiators.

On Tuesday, US President Donald Trump said the trade talks with China were going well and he was open to extending the March 1 deadline to complete negotiations.