The benchmark indices were trading higher on Thursday thanks to gains in banking stocks after the Cabinet on Wednesday approved a new policy to deal with non-performing assets (NPAs).
At 10:27 am, the S&P BSE Sensex was trading at 30,062, up 167 points, while the broader Nifty50 was ruling at 9,343, up 31 points.
In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices gained 0.5% and 0.4%, respectively.
"Yet another day’s flattish close in the previous session raises the potential for expansion in trading range. Such a move could set a 100-point perimeter centering 9,330 initially. A broadening wedge pattern seen in hourly charts is still in formation and confirms the potential for expanded trading range," said brokerage Geojit Financial Services in a technical note.
Buzzing stocks
Nifty PSU Bank index was the leading gainer among sectoral indices, led by gains in Oriental Bank, Union Bank and Syndicate Bank.
ICICI Bank jumped nearly 9% to Rs 296 after the the country's largest private sector lender reported three-fold jump in standalone net profit to Rs 2,024.64 crore for the quarter ended March 31. The bank had made a net profit of Rs 701.89 crore in the January-March quarter of the fiscal year 2015-16.
"Yet another day’s flattish close in the previous session raises the potential for expansion in trading range. Such a move could set a 100-point perimeter centering 9,330 initially. A broadening wedge pattern seen in hourly charts is still in formation and confirms the potential for expanded trading range," said brokerage Geojit Financial Services in a technical note.
Buzzing stocks
Nifty PSU Bank index was the leading gainer among sectoral indices, led by gains in Oriental Bank, Union Bank and Syndicate Bank.
ICICI Bank jumped nearly 9% to Rs 296 after the the country's largest private sector lender reported three-fold jump in standalone net profit to Rs 2,024.64 crore for the quarter ended March 31. The bank had made a net profit of Rs 701.89 crore in the January-March quarter of the fiscal year 2015-16.
Cabinet approves new NPA policy
The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved a new framework for dealing with Rs 6 lakh crore worth of non-performing assets (NPAs) in the banking system.
The framework includes the promulgation of an Ordinance to amend the Banking Regulation Act to give more teeth to the Reserve Bank of India (RBI) and its oversight committees to act on behalf of banks while deciding on NPAs. The proposals are now awaiting the President’s assent.
Fed outcome
At the end of its two-day meeting, the US Federal Reserve kept its benchmark interest rate steady as expected, but downplayed weak first-quarter economic growth and emphasised the strength of the labor market, a sign it was still on track for two more rate increases this year.
Futures traders are now pricing in a 72% chance of a June rate hike, from 63% before the Fed's statement, according to the CME Group's FedWatch Tool.
Global markets
Asian stocks retreated tracking subdued trade on Wall Street. MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.15% in early trade on Thursday.
Australian shares were 0.3% lower.
Japan is closed for the Golden Week holiday. South Korea's KOSPI bucked the weaker trend and was up 0.5% after touching an all-time high earlier in the session on strong corporate earnings.
Overnight, Wall Street closed flat to lower.
The Nasdaq fell 0.4% as Apple shares slid after reporting lower than expected iPhone sales on Tuesday.
(With inputs from Reuters)
(With inputs from Reuters)