Sensex reclaims 28,000; HDFC, Axis Bank up 1%

Markets continued to trade higher, amid firm global cues, led by financials while IT major TCS and index heavyweight Reliance Industries also witnessed renewed buying interest at lower levels in early trades.

At 9:35AM, the 30-share Sensex was up 119 points at 28,009 and the 50-share Nifty was up 48 points at 8,477.

On Wednesday, benchmark indices snapped five-day losing streak, amid a volatile trading session, aided by a sharp rebound in late trades led by financials.

Analysts at Nirmal Bang suggest since Nifty has managed to sustain and close above the resistance of 8400 levels is a positive signal. "The immediate support level for the index is now placed at 8340, as long as 8340 remains intact the upside target of 8500 to 8570 levels may be achieved," they said in a morning note.

Foreign institutional investors (FIIs) from countries with which India has double taxation avoidance agreements (DTAAs) that specifically exempt them from capital gains tax may escape minimum alternate tax (MAT) demands from the income tax department, a Business Standard report suggests.

Meanwhile, the India Meteorological Department said Southwest monsoon received by the country this year could be below normal, at 93% of the long-period average.

Asian stocks were trading firm in early trades with profit taking in Chinese shares after a private survey showed subdued manufacturing data in April. The flash HSBC/Markit Purchasing Managers' Index (PMI) declined to 49.2 in April. A reading below 50-point level indicates contraction. China's benchmark share index Shanghai Composite was down 0.9%. Among others in the region, Nikkei was up 0.3%, Straits Times rose 0.4% and Hnag Seng was up 0.5%.

US stocks ended higher with global card issuer such as Visa rising over 4% on plans to expand presence in China. Master Card also gained nearly 4%. McDonalds also witnessed buying on reports that its plans to revive sales. The Dow Jones ended up 89 points at 18,038.27, the broader S&P 500 rose 11 points at 2,107.96 and the tech-laden Nasdaq ended up 21 points at 5,035.17.

All sectoral indices on the BSE were in the green led by BSE Realty index along with Bankex, Healthcare, FMCG and Consumer Durables among others.

Mortgage lender HDFC was up 1% contributing the most to the Sensex gains along with private lenders such as HDFC Bank, ICICI Bank and Axis Bank.

Index heavyweight Reliance Industries was up 0.7% on renewed buying interest at lower levels after the recent correction.

Other gainers include, TCS, Maruti Suzuki and Hindustan Unilever, Tata Steel, Cipla and ITC among others.

Shares of Biocon were up 2% at Rs 465 extending its previous day’s 3% gain on the Bombay Stock Exchange (BSE) after the company said it has filed a prospectus with market regulator Securities and Exchange Board of India (Sebi) for the Initial Public Offer (IPO) of its research arm, Syngene.

In the broader market, the BSE Mid-cap index was up 1% and the Small-cap index was up 0.8%.

Market breadth was strong with 1,171 gainers and 317 losers on the BSE.