The BSE Sensex jumped 0.5% to take out the 17,500 mark in early trade Wednesday tracking gains across Asia. The Nifty index traded above the 5,300 mark. The rupee, however, slipped against the dollar and traded at 54.50.
Indian markets have been consolidating this week after witnessing sharp gains Friday. Analysts are now optimistic that markets are headed to higher levels after a brief pause.
"Today's session might be range bound... 5,330 remains a key hurdle for markets," independent analyst Sarvendra Srivastava told NDTV Profit.
Markets in Asia traded with gains on hopes that the European central bank may cut rates Thursday to kick start growth. Japan's Nikkei index rose 0.5%. Overnight, the Dow gained 0.6% to 12,944 in a holiday curtailed session.
Investors this week have brushed off signs of weakening economic growth, including reports that showed falling industrial production in the US and China, the world's two biggest economies.
Barring the oil and gas index, all groups of stocks traded higher on the BSE. Commodity stocks like Sesa Goa (1.95%), Sterlite (1.7%), and JSPL (1.2%) saw buying interest on the back of positive global outlook. They were the three top gainers on the Nifty index.
On the Nifty index, 11 of the 50 stocks traded lower. Oil refiner BPCL (-1%) declined on the back of rising crude prices. State run oil explorer ONGC (-0.9%) and FMCG major HUL (-0.8%) were the other big laggards.
The market breadth was positive with 65% stocks rising on the BSE 500 index, indicating buying interest in the broader markets.
(With inputs from AP)
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