Mumbai: The Sensex rose more than 400 points in early trade on Wednesday, tracking gains in index heavyweights Reliance Industries, HDFC Bank, and ICICI Bank amid a positive trend in global markets.
In the first hour of trading, the 30-share index rose 449.23 points, or 0.80%, to 56,768.24. Similarly, the Nifty rose 134.95 points, or 0.80%, to 16,905.80.
The top gainer in the Sensex pack was IndusInd Bank, which rose around 2%, followed by Reliance Industries, Tata Steel, and M&M.
PowerGrid, Asian Paints, Wipro, and Nestle India, on the other hand, were among the laggards.
The 30-share equity benchmark rose 497 points, or 0.89 percent, to end the previous session at 56,319.01, while the Nifty rose 156.65 points, or 0.94 percent, to 16,770.85.
According to stock exchange data, foreign institutional investors (FIIs) continued to be net sellers in the capital market on Tuesday, selling shares worth Rs 1,209.82 crore.
The bulls may benefit from the positive global backdrop provided by the recovery in US and European markets, but this will not be enough to propel the markets much higher. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the Nifty is unlikely to return to its October high of 18,604 anytime soon.
Despite the fact that FII selling has slowed, he believes that if the market rises significantly, they will continue to sell.
In other Asian markets, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading higher in mid-session deals.
In the overnight session, stock exchanges in the United States ended on a positive note.
Meanwhile, Brent crude, the international oil benchmark, rose 0.24 percent to USD 74.16 per barrel.