Positive global cues along with hopes of a faster economic rebound buoyed India's key equity markets during the post-noon trade session on Wednesday.
Initially, India's benchmark indices started on a positive note with the global sentiments intact towards positivity, completely ignoring the spread of Delta variant around the world.
However, expensive valuations capped gains.
In the process, the S&P BSE Sensex hit intra-day record level of 54,440.8 points and the Nifty50 touched a new high of 16,290.2 points.
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Consequently, the Sensex trade at 54,319.93 around 12.15 p.m., higher by 496.57 points, or 0.92 per cent, from its previous close.
Similarly, the Nifty50 on the National Stock Exchange closed at 16,257.10 points, higher by 126.35 points, or 0.78 per cent, from its previous close.
"Positive cues from the wall street and other Asian markets. All major sectors have shown positivity," said Likhita Chepa, Senior Research Analsyst at CapitalVia Global Research.
"We have witnessed the breach of 16,200 level, sustaining above 16,200, we expect the market to gain momentum, leading to an upside projection till 16,450-16,500 level. Technical indicators also support positivity in the market."
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According to Deepak Jasani -- Head of Retail Research at HDFC Securities: "Carrying on from the momentum of the previous day, Nifty opened gap up on Aug 04 and continued to inch up in the morning session. It has run into some profit taking post 1100Hrs."
"Asian markets rose shrugging off concerns about China regulatory actions and Delta strain spread. In India, Bank stocks are up, while Realty stocks have come under profit taking."
"Nifty rose with another gap up reflecting the pent up demand in index heavyweights. Advance decline ratio, however, has turned very negative despite Nifty being up, suggesting profit taking in the broader markets. With other markets doing well, Nifty could continue to remain steady or up, while the broader market correction could continue for a few sessions."
Geojit Financial Services' Head of Research Vinod Nair said: "Domestic market extended its rally as banking and finance stocks started to rebound after good recent earnings, upbeat economic data and in anticipation of RBI policy. Market is expecting MPC to maintain the supportive measures and leave the rates unchanged."
LKP Securities' Head of Research S. Ranganathan said: "Bulls were in complete control as indices rose a percentage led by Largecaps and Financials even as Midcaps went through a corrective phase today after many months of outperformance."
"The thumping retail response on the first day itself in the IPO of the foursome seems to have had a cool-off effect on the broader markets today."
