Healthy buying support along with expectations of positive cues from China rose India’s key stock indices during the morning trade session on Wednesday.
Accordingly, both key indices – S&P BSE Sensex and NSE Nifty50 — rose on hopes that Evergrande debt default may be avoided in the near term.
Besides, market observers, said the up move comes on the back of healthy buying support for media, auto and realty stocks.
Sector wise, banking stocks traded lower.
At around 11.10 a.m., S&P BSE Sensex traded at 59,086.95 points, higher by 81.68 points or 0.14 per cent from its previous close.
Similarly, NSE Nifty50 inched up. It rose to 17,579.65 points, higher by 17.65 points or 0.10 per cent from its previous close.
“Expectations that Evergrande debt default may be avoided for the near term, has improved sentiments,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“Advance decline ratio is sharply positive. Markets need to maintain this firmness and ‘A/D’ ratio during the day to sustain confidence of traders or investors and see expansion in volumes.”
According to Gaurav Garg, Head of Research, CapitalVia Global Research: “Our research suggests that 17,450-17,500 will be an important support zone for the market to stay positive in the short term.”
“If the market sustains above this level, we can witness further higher levels of 17,850-17,900.”