Stocks surged higher in early trades on the Indian bourses on Wednesday, with investors reacting positively to the government's proposal to hike FDI limits in as many as 12 sectors, including in telecom, defence and refineries space.
The BSE benchmark Sensex, which rose to 19,970 in early trades, is currently at 19,930.63, up 79.40 points or 0.4% from its previous close. The Nifty index of the National Stock Exchange is up with a gain of 18.45 points or 0.31% at 5973.70, off an early high of 5988.
Besides key telecom stocks, power, FMCG, oil, capital goods and consumer durables sectors have moved higher. Select information technology, healthcare and automobile stocks have also moved up. Metal and realty stocks are trading mixed, while bank stocks are mostly trading weak.
Mahindra & Mahindra, Dr Reddy's Laboratories, Tata Power, ITC, Bharti Airtel, NTPC, Larsen & Toubro, Sterlite Industries, Reliance Industries, Tata Consultancy Services, BHEL and Hero Motocorp are trading higher by 1% - 2%.
Sun Pharmaceutical Industries, Jindal Steel & Power, GAIL India, Bajaj Auto, Maruti Suzuki, Infosys, HDFC and ONGC are also trading firm.
Ambuja Cements and ACC are trading higher by over 2%. Asian Paints, Power Grid Corporation, Sesa Goa, IDFC, Reliance Infrastructure, Ultratech Cement and Grasim Industries are also trading notably higher.
Meanwhile, HDFC Bank, IndusInd Bank, Axis Bank, Yes Bank, Kotak Bank, ICICI Bank and State Bank of India are trading weak, losing 0.6% - 2%.
Tata Motors, BPCL, Ranbaxy Laboratories, Jaiprakash Associates, Cairn India, Coal India and Cipla are also trading lower.