The Sensex and Nifty were trading marginally higher on hopes that the GDP data this week would show economic growth recovering in the July-September quarter, though broader gains were capped as sentiment turned cautious after a missile test by North Korea.

At 12.40 p.m., the 30-share BSE index Sensex was up 45.68 points or 0.14 per cent at 33,664.27 and the 50-share NSE index Nifty was up 6.2 points or 0.06 per cent at 10,376.45.

Among BSE sectoral indices, consumer durables index was up 1.15 per cent, followed by realty 1.07 per cent, capital goods 0.59 per cent and infrastructure 0.5 per cent. Only banking index was down 0.05 per cent.

Top five Sensex gainers were Coal India (+1.89%), Bajaj Auto (+0.82%), HUL (+0.88%), Wipro (+0.83%), and Adani Ports (+0.77%), while the major losers were Axis Bank (-1.38%), HDFC (-0.83%), Dr Reddy's (-0.31%), Maruti (-0.16%) and State Bank of India (-0.09%).

GDP growth

India's gross domestic product (GDP) is likely to have grown 6.4 per cent from a year ago in July-September, from 5.7 per cent in the preceding quarter, according to a Reuters poll of analysts. The data is due on Thursday after market hours.

The data could help support a market that has surged around 27 per cent so far this year, though gains have slowed since indexes hit a record high in early November over global concerns such as higher oil prices.

But broader gains on Wednesday were capped as caution over the latest missile test by North Korea and softness in Chinese shares hit Asian markets. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.08 per cent.

The second half of the year could be very positive compared with the first half due to a revival in growth, base effect and as teething troubles related to GST ease, said Siddharth Sedani, Head and Vice-President of equity advisory at Anand Rathi.

Asian shares

The dollar held firm on Wednesday after Wall Street shot to record peaks amid signs of progress on US tax cuts, while Bitcoin topped $10,000 on more exchanges as appetite for digital currencies showed no sign of fading.

Asian share markets were not as jubilant, held back by caution over the latest missile test by North Korea and concerns at recent softness in Chinese shares.

MSCI's broadest index of Asia-Pacific shares outside Japan was up just a fraction, while China's blue chip index eased 0.5 per cent. Among the better performers, Japan's Nikkei added 0.4 per cent, while Australia's main index rose 0.7 per cent.

Fed chair nominee Jerome Powell, in his Senate confirmation hearing on Tuesday, said the case for a December rate hike was coming together, though he dodged comment on the tax proposals.

Powell also hinted at a lighter touch for bank regulation, saying current rules were already tough enough.

The S&P financial sector soared 2.6 per cent in reaction, its biggest daily gain since March 1. That helped the Dow climb 1.09 per cent, while the S&P 500 rose 0.99 per cent and the Nasdaq 0.49 per cent.

(With inputs from Reuters)