Paring early losses, the BSE benchmark Sensex today recovered by 56 points in late morning trade on fresh buying in consumer durable, capital goods, auto, realty and banking counters on firm Asian cues.
The market sentiment was also boosted after Finance Minister P Chidambaram said yesterday that revival and encouragement of growth will continue to be the focus of the government.
The BSE-30 share index, Sensex, resumed higher at 18,386.53 and hovered in a range of 18,402.29 and 18,210.75 before quoting 18,369.25 points at 1030 hours.
It showed a gain of 56.31 points or 0.31 per cent from its last close.
The NSE 50-share barometer Nifty also moved up by 17.95 points or 0.33 per cent to 5,430.55 at 1030 hours.
Major gainers were – Jindal Steel (4.19 per cent), Bharat Heavy Electricals Ltd (BHEL) (3.26 per cent), Tata Motors (3.08 per cent), Mahindra & Mahindra Ltd (1.98 per cent), ICICI Bank (1.63 per cent) and Coal India (1.44 per cent).
Asian stocks rose in their early trade after reports from Europe and the US boosted confidence in global economic recovery.
Key indices in China, Hong Kong, Singapore, Japan, Taiwan, Indonesia and South Korea were up by 0.3 to 2.53 per cent.
Meanwhile, foreign institutional investors (FIIs) sold shares worth a net Rs 1,277.64 crores yesterday, as per provisional data from the stock exchanges.