The key domestic benchmark indices were trading in the green in the late morning trading session with sharp gains seen in pharmaceuticals, IT and PSU banking sector.
The investor reacted to mixed macro data as factory output grew faster in April but retail inflation rose sharply in May. Industrial production surged by 4.9 per cent in April, from the five-month low of 4.4 per cent growth seen in March. However, the consumer price index-based inflation spiked to a four-month high of 4.87 per cent in May due to rising food prices and a lower base.
On the corporate front, shares of Sun Pharma added 3 percent in the opening trade on Wednesday as company received EIR from USFDA for its Halol facility. Among others, stocks of Unitech also saw some movement after the company’s consolidated losses widened to Rs 999.8 crore for the March quarter.
At 11:15 a.m the Bombay Stock Exchange bellwether Sensex was trading at 35829.37 up by 136.85 points or by 0.38 per cent, while the NSE Nifty was at 10873.8 up by 30.95 points or by 0.29 per cent.
The BSE Sensex touched an intraday high of 35877.41 and an intraday low of 35715.96 while the NSE Nifty touched an intraday high of 10888.9 and an intraday low of 10842.65.
The top gainers of the BSE Sensex pack were Dr. Reddy's Laboratories Ltd. (Rs. 2292.90,+4.69 per cent), Sun Pharmaceutical Industries Ltd. (Rs. 555.00,+2.68 per cent), Axis Bank Ltd. (Rs. 550.95,+2.64 per cent), Tata Consultancy Services Ltd. (Rs. 1815.85,+1.96 per cent), State Bank of India (Rs. 287.75,+1.73 per cent), among others.
Meanwhile, Oil And Natural Gas Corporation Ltd. (Rs. 169.05,-1.34 per cent), Tata Steel Ltd. (Rs. 572.70,-1.22 per cent), Hindustan Unilever Ltd. (Rs. 1626.40,-0.86 per cent), Housing Development Finance Corporation Ltd. (Rs. 1837.50,-0.56 per cent), Kotak Mahindra Bank Ltd. (Rs. 1326.35,-0.38 per cent), were among the top losers on BSE.
The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 2416, shares advanced were 1346 while 957 shares declined and 113 were unchanged.
On the global front, Asian stocks were trading mixed as investors remained wary ahead of Federal Reserve policy decision and its stance on future rate hikes while the Wall Street closed modestly higher in the previous trading session as trader cheered historic US-North Korea summit, while rally in technology stocks also boosted market sentiment.