The Nifty50 reclaims its crucial level of 8,650 supported by gains in realty, power, oil & gas, metal, consumer durable, banks, auto, and healthcare stocks.
At 09:20 AM: The 30-share index was trading 133 points higher or 0.48 per cent at 28,001. It touched a high of 28,034.28 and a low of 27,985.76 in morning trade.
Maruti Suzuki (up 3 per cent), Tata Motors (up 1.4 per cent), HDFC Bank (up 0.50 per cent), Sun Pharma (up 1.2 per cent), and SBI (up 1.2 per cent) were the major Sensex gainers.
Telecom stocks will be in focus with the biggest auction of spectrum till date under way, while stocks of select upstream oil companies may come under pressure due to a cut in natural gas price. Meanwhile, fertiliser stocks may cheer the gas price cut. Auto stocks, too, will be in focus as they reveal their monthly sales figures, while cement firms will announce their monthly dispatch data.
Cues from Singapore positive: At 8.00 am, Nifty50 futures on the Singapore Stock Exchange were trading 10.50 points higher at 8,660, indicating a flat-to-positive opening for the domestic market.
"The best case scenario could be that we could consolidate for some time between 8,500 and 8,800 levels and spend some more time in this range. There is credit policy review this week and that is going to determine how the market behaves in the short term. But unless some new developments take place on the geopolitical front, the market may remain range bound," said Kunal Saraogi at Equityrush.