Markets maintain gains, auto stocks rise

Mumbai: After opening in the positive territory, the Indian stock market maintained its gains during the mid-afternoon trade session on Wednesday.

Buying activity was witnessed across sectors especially in automobile and realty stocks.

At 2.20 p.m. the BSE Sensex traded at 39,293.58, higher by 249.23 points or 0.64 per cent from its previous close.

The Nifty50 on the National Stock Exchange traded at 11,585.40, higher by 63.60 points, or 0.55 per cent, from the previous close.

"Indian markets opened marginally higher and remained rangebound till about noon. Post this they gradually began to rise," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Smallcap and Midcap index seem to have run out of steam after a strong two day rally. Among sectoral indices, Auto and Realty remain the main gainers while Power was the sole loser. Reliance rose with volumes."

In addition, Jasani pointed out that while addressing the Ficci National Executive Committee Meeting, Reserve Bank of India Governor Shaktikanta Das assured that the Central Bank is closely monitoring economic situation and is prepared to take further measures to prepare the economy and banking system to fight the Covid-19 pandemic.

"These reassuring statements helped the Nifty to rise towards the re cent highs," he said.

"The Nifty has moved above the recent resistance of 11,584. Sustaining above this level could mean more upsides in the near term."