Indian shares recovered from opening losses on Tuesday on the back of sustained buying in midcaps and auto stocks despite largely negative global cues.
Domestic sentiments improved as India-Pakistan tensions ebbbed along with growing hopes of the ruling Bharatiya Janata Party-led National Democratic Alliance government returning to power in the upcoming general elections.
Activity in India's huge service sector accelerated in February with the Nikkei/IHS Markit Services Purchasing Managers' Index rose to 52.5 in February from January's 52.2.
The S&P BSE Sensex was trading at 36,136, up 72 points, while the broader NSE Nifty50 was ruling at 10,897.50, adding 34 points at 12.20 pm. Meanwhile, broader markets outperformed with the Nifty MidCap rising 1.76 percent and its BSE peer, surging 1.46 percent.
Tata Motors, Hindustan Petroleum, Indiabulls Housing Finance, Indian Oil Corp and Bharat Petroleum were top gainers on the NSE frontline index, rising between 3 to 8 percent.
Tech Mahindra, Wipro, L&T, Infosys and Hindustan Unilever fell by up to 2.57 percent.
lifted the benchmark index Nifty50 into the positive territory as they gained up to 9 percent in the morning trade on Tuesday despite poor sales numbers reported by various auto companies.
Among auto stocks, shares of Tata Motors surged over 9 percent after Jaguar Land Rover reported a 29 percent year-on-year rise in retail sales in February in the US.
Buying in the midcap space was led particularly by non-banking and public sector banks. Religare shares topped 14 percent, Repco 9 percent, Muthoot Capital 8 percent. Edelweiss, PNB, IIFL Holdings, Equitas, IDBI Bank, Lakshmi Vilas Bank, and Indiabulls Housing, gained between 5 and 8 percent.
Shares of Ashoka Buildcon gained nearly 6 percent after a joint venture of the company emerged as the lowest bidder for Rail Vikas Nigam project.
Earlier, benchmark indices started lower as US President Donald Trump said that he intends to end India's preferential trade treatment under the GSP program. Asian shares also fell after China cut its economic growth target.
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