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Benchmark indices were trading higher during the afternoon on Wednesday, led by auto and metals.
Market opened on a positive note despite weak global cues and extended the rally in the first half, witnessing buying across almost all counters. FMCG and realty stocks faced pressure.
At 1 pm, the BSE Sensex was trading at 60,748.56, up 464.25 points or 0.77 per cent, near its new all-time high of 60,755.70. It recorded an intraday low of 60,452.29. The Nifty 50, after recording a fresh high of 18,162.90, was trading at 18,156.85, up 164.90 points or 0.92 per cent. It recorded an intraday low of 18,050.75.
Tata Motors, Mahindra & Mahindra, Titan, Powergrid and Tata Consumer were the top gainers on the Nifty 50 while Maruti, ONGC, Hindustan Unilever, Coal India and Eicher Motor were the top laggards.
Analysts have been surprised that the market has remained at elevated levels despite selling by institutions, both domestic and FPIs and the weakening rupee.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "An important trend in the market in recent days is the market resilience inspite of selling by both FIIs and DIIs."
"This new trend reinforces the dominance of retail investors and the success of the ' buy on dips strategy. We don't know how long this trend will continue and this strategy will work. But now this trend is strong and might continue till an event triggers a trend reversal," Vijayakumar said.
However, according to Vijayakumar, the decline in CPI inflation to 4.35 per cent in September has been a positive for the market as it supports the RBI's view on inflation and will allow the MPC to continue with the accommodative monetary stance.
"Another major development is the TPG investment of ₹7,500 crore in Tata Motors' electric vehicle subsidiary. This, along with the privatization of Air India, substantially enhances investor confidence in India. The fact that this is happening when foreign investors are slowly leaving China is significant," Vijayakumar added.
Q2 results of Infosys, Wipro and Mindtree today will be significant for the IT sector that has been underperforming after TCS announced its earnings which fell below market expectations.
FMCG under pressure
On the sectoral front, all indices except Nifty FMCG and Realty were in the green.
Auto Metals and Consumer Durables led the rally.
Nifty Auto was up 3.53 per cent. Nifty Metal and Nifty Consumer Durables were up 1.64 per cent and 1.26 per cent, respectively.
Meanwhile, Nifty FMCG was down 0.24 per cent. Nifty Realty was down 0.42 per cent.
Broader indices
Broader indices were also in the green.
Nifty Midcap 50 was up 1.42 per cent while Nifty Smallcap 50 was up 0.13 per cent. The S&P BSE Midcap was up 1.36 per cent while the S&P BSE Smallcap was up 0.74 per cent.
The volatility index was down 0.86 per cent to 15.71.
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