Key equity indices pared early gains in mid-morning trade. Auto stocks witnessed value buying. The Nifty was trading near 15,150 mark, buoyed by positive global cues.
At 11:23 IST, the barometer index, the S&P BSE Sensex, was up 169.80 points or 0.33% to 51,195.28. The Nifty 50 index added 47.3 points or 0.31% to 15,145.70.
In the broader market, the S&P BSE Mid-Cap index gained 0.39% while the S&P BSE Small-Cap index rose 0.62%.
The market breadth was strong. On the BSE, 1499 shares rose and 1143 shares fell. A total of 157 shares were unchanged.
Global shares rallied as falling US bond yields eased concerns about surging inflation. The pullback for yields on Tuesday came as investors watched for the final passage of the Democrats' $1.9 trillion stimulus package in Congress.
On Tuesday, the US House of Representatives voted to advance President Joe Biden's $1.9 trillion Covid-19 relief bill, clearing the way for the measure to be considered on Wednesday, when it is expected to pass.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 117,537,679 with 2,609,805 deaths. India reported 184,598 active cases of COVID-19 infection and 158,063 deaths while 108,39,894 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty Auto index rose 0.73% to 10,540.95 amid bargain hunting. The index declined by 2.60% in the past five sessions.
Eicher Motors (up 2.75%), Tata Motors (up 1.81%), Bharat Forge (up 1.32%), TVS Motor Company (up 0.95%) and Ashok Leyland (up 0.89%) were the top index gainers.
Global Markets:
Asian stocks advanced Wednesday as investors returned to risky assets, confident that a massive U.S. stimulus package will soon be approved. The session in Asia-Pacific follows an overnight session on Wall Street where bond yields declined and tech stocks staged a comeback.
The Australian dollar declined after the central bank governor reportedly suggested that markets may be getting ahead of themselves by pricing in an interest-rate increase within the next couple of years.
U.S. stocks rose on Tuesday after a decline in bond yields caused investors to rotate back into the beaten-up technology sector. The 10-year Treasury yield fell more than 5 basis points to 1.54%. The benchmark rate traded as high as 1.62% on Monday.
Democrats in the U.S. House of Representatives are aiming to pass the $1.9 trillion coronavirus relief bill on Wednesday so that Biden can sign it by the weekend. The legislation extends a $300 per week jobless benefit boost and programs expanding unemployment aid to millions more Americans through September 6.
The OECD sharply raised its 2021 global growth forecast on Tuesday as the deployment of vaccines and a huge US stimulus programme have greatly improved economic prospects. The Paris-based Organisation for Economic Co-operation and Development says it now expects the global economy to grow by 5.6%, an increase of 1.4% points from its December forecast.
Global economic prospects have improved markedly in recent months, helped by the gradual deployment of effective vaccines, announcements of additional fiscal support in some countries, and signs that economies are coping better with measures to suppress the virus, it said in a report.
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