Benchmark indices were trading over 1 per cent higher during the afternoon on Wednesday.

The Indian equity market started off on a positive note as global markets edged up amid softening crude prices. Indices extended gains in the first half amid broad-based buying as investors await the outcome of the US Fed meeting later in the day.

At 1 pm, the BSE Sensex was trading at 56,552.06, up 775.21 points or 1.39 per cent. It recorded an intraday high of 56,761.01 and a low of 56,389.26. The Nifty 50 was trading at 16,903.80, up 240.80 points or 1.45 per cent, near the day’s high of 16,942.60. It recorded an intraday low of 16,837.85.

Axis Bank, Ultratech Cement, IndusInd Bank, Eicher Motor and Bajaj Finserv were the top gainers on the Nifty 50 while only two stocks — Cipla and Sun Pharma — were in the red.

Santosh Meena, Head of Research, Swastika Investmart, said, “Indian markets are witnessing a strong move in the early morning session following a sudden selloff in yesterday’s trading session. The rally can be attributed to an overnight rally in the US market and a sharp fall in crude oil prices.”

“It seems that the market is already discounting the end of Russia-Ukraine tension soon; therefore, we are seeing a sharp reversal in commodity prices. A surge in Covid cases and lockdown in China is also putting pressure on prices of crude oil. The fall in prices of crude oil is a major tailwind for the Indian equity markets whereas FIIs’ selling has also come down significantly. Global markets have also digested the expected rate hike of 25 basis points by the US Fed. However some volatility is expected after the FOMC (Federal Open Market Committee) meeting outcome overnight today,” added Meena

All in green

All sectoral indices were trading in the green.

Nifty Metal, Nifty Private Bank and Nifty Realty were each up over 2 per cent. Nifty Bank, Nifty Financial Services, Nifty Auto and Nifty Consumer Durables were each up nearly 2 per cent. Nifty PSU Bank and Nifty OIl & Gas were up 1.5 per cent each.

Broader indices

Broader indices were also in the green.

Nifty Midcap 50 was up 1.78 per cent while Nifty Smallcap 50 was up 1.28 per cent. The S&P BSE Midcap was up 1.38 per cent while the S&P BSE Smallcap was up 1.27 per cent.

The volatility index softened 7.11 per cent to 24.83.