Mumbai: The BSE Sensex rose more than 1% on Wednesday afternoon led by Reliance Industries.
At 2:09pm, the 30-share BSE index was trading up 1.02% at 16,946.49 with 22 components gaining. The 50-share NSE index was up 1.13% at 5,073.55.
Markets were trading 0.8% higher on Wednesday, putting the market on track for a third consecutive session of gains after the national budget aimed to boost consumer spending.
Firmer Asian markets also underpinned sentiment, but traders said there could be some resistance following a rise of about 4% since the budget was released on Friday.
Reliance Industries led the gains on hopes the energy major would look elsewhere than plumb for an expensive bid for LyondellBasell, traders said.
LyondellBasell has rejected an offer from Reliance that values the bankrupt petrochemicals group at $14.5 billion, a person familiar with the matter said on Tuesday.
“People were worried the deal if it went through would be expensive. In a way, it is a relief that it is not happening,” said Neeraj Dewan, director of Quantum Securities.
The stock, which has the heaviest weight in the main index, was up 2.9% at 1,012.25 rupees, after rising 0.6% in the previous session.
By 10:00am, the 30-share BSE index was trading up 0.77% at 16,902.04, with 24 of its components gaining. The 50-share NSE index was up 0.8% at 5,059.15.
“There were expectations of a rally post budget. People had held back investment decisions and since the budget did not have many negatives, we can see the result now,” said Dewan.
A small correction is not ruled out after the steep rally if global cues did not improve, he said.
Engineering and construction firm Jaiprakash Associates climbed 3.2% as its cement shipments in February jumped 61%, while ACC fell 1.1% as its cement shipments dropped 2.3%.
Tata Consultancy Services rose 1.1% after the leading outsourcer said late on Tuesday it had won a bid to administer Britain’s new national pension scheme.
Rivals Infosys Technologies and Wipro were up 0.2% and 0.1% respectively.
In the broader market, gainers were nearly four times the number of losers on volume of 76 million shares.