Opening Bell: Sensex, Nifty rise 0.5% in early trade led by midcaps, banks

Benchmark Indian indices, Sensex and Nifty, started 0.5 percent higher on Tuesday led by buying in midcaps, which rose nearly a percent, and bank shares. The sentiment improved as coronavirus cases showed a downtrend.

At 9.16 am, the benchmark 30-share BSE Sensex surged 268 points or 0.55 percent at 48,986, and the broader 50-share NSE Nifty was up 84 points or 0.58 percent at 14,718. The midcaps also rose around a percent.

Among shares, Axis Bank, Hindalco, IndusInd Bank, Tata Motors and Tata Steel were top gainers, rising between 1.5 and 2 percent.

Oil marketing companies also rose over 1.5 percent as they raised retail prices for petrol and diesel. Global brokerage Credit Suisse had last week indicated in a report that OMCs will likely start raising fuel prices post-Assembly election results.

Elsewhere in Asia, markets were mostly higher as investor sentiment improved on signs of recovery from the coronavirus pandemic as major economies around the world reopen.

Hong Kong's Hang Seng started 0.3 percent higher. Japan and mainland China's markets remained closed on Tuesday for holidays dampening trading volumes across the region.

Overnight, Wall Street also posted gains with the Dow Jones Industrial Average rose 0.7 percent. The S&P gained 0.27 percent, but the Nasdaq composite dropped half a percent.