NEW DELHI: Indian stock indices extended their gains for the fourth straight session on Wednesday, tracking firm cues from US markets and a relative decline in international crude oil prices.
At 9.44 am, Sensex traded at 59,273.77 points, up 313.17 points or 0.53 per cent, whereas Nifty traded at 17,576.00 points, up 89.05 points or 0.51 per cent.
"The US markets ended higher yesterday as strong corporate earnings reports helped extend a rally to start the week. Asian markets are trading mostly higher following the broadly positive cues from US markets overnight," said Mohit Nigam, Fund Manager and Head - PMS at Hem Securities.
Nigam said there might be some action in agriculture-related stocks as the government said the hike in the minimum support price of ke Rabi crops will further energise the agriculture sector.
On Tuesday, the Cabinet Committee on Economic Affairs (CCEA) approved an increase in the minimum support prices (MSP) for rabi crops for 2023-24 marketing season.
The hike in MSP was in the range of Rs 100-500. "The government hiked the minimum support price (MSP) of six Rabi crops by up to 9 per cent.
There may be some buzz in FMCG stocks as private report stated that India is examining whether there is a need to raise palm oil import taxes as part of efforts by the world's biggest vegetable oil importer to help millions of its farmers reeling from lower oilseed prices," Nigam added.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: "There are two factors supporting the ongoing rally in the market: One, support from the mother market US aided by some excellent quarterly results and two, FII selling getting completely overwhelmed by DII buying.
DIIs bought stocks for Rs 5290 crores in the cash market during the last 3 trading days against FII selling of Rs 1536 crores." However, high global inflation and tightening central banks, Vijayakumar said, pose headwinds to the ongoing rally.
Meanwhile, brokerage firm Prabhudas Lilladher has recommended Apollo Hospitals, Avenue Supermart, Bharti Airtel, ICICI Bank, and Mahindra & Mahindra among the large-cap stocks this Diwali.
Among mid-cap and small-cap stocks, Ashok Leyland, Chambal Fertilisers and Chemicals, Federal Bank, Jubilant Ingrevia, VIP Industries, and Westlife Development are some of the top picks.