Mumbai, Dec 7 (IANS) Indian equity markets on Wednesday surged on the back of increased hopes of an easing of the monetary policy by the Reserve Bank of India (RBI), coupled with broadly positive global cues and value buying.
The key Indian indices traded in the green during the mid-afternoon trade session as healthy buying was witnessed in automobile, banking and oil and gas stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 45.85 points or 0.56 per cent to 8,189 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,456.21 points, traded at 26,532.40 points (at 1.30 p.m.) -- up 139.64 points or 0.53 per cent from the previous close at 26,392.76 points.
The Sensex has touched a high of 26,540.83 points and a low of 26,408.77 points during the intra-day trade so far.
The BSE market breadth was tilted in favour of the bulls -- with 1,468 advances and 980 declines.
"The markets are rangebound as investors are cautious ahead of the RBI monetary policy announcement and expect an easing of interest rates," Astha Jain, Senior Research Analyst at Hem Securities, told IANS.
"Global cues are largely positive with higher Asian and US indices. The rupee, however, lost its early gains to the US dollar."
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the equities markets are likely to turn volatile in the second half of the session due to fluctuations in USD/INR futures prices and profit booking at higher levels.
"IT stocks faced some profit booking at higher levels, whereas banking, auto, oil-gas, textile, aviation, FMCG, cement and power stocks traded with firm sentiments," Desai said.
On Tuesday, the equity markets closed on a flat note as profit booking and caution ahead of key global events capped gains.
The barometer index was up 43.66 points or 0.17 per cent, while the NSE Nifty rose by 14.40 points or 0.18 per cent.
