Benchmark indices were trading higher in continuation of a solid rally witnessed on Monday. The Sensex was trading with gains of 150 points, while the Nifty gained 56 points in trade. Asian markets were marginally weak in trade, led by the Japanese Nikkei.
Shares in Maruti and Axis Bank were both trading lower ahead of corporate results to be declared later today. The Bank Nifty was trading with gains of nearly 0.50 per cent. Among the early gainers in trade were Tech Mahindra, Hindalco and HDFC Life. Stocks that lost ground from the Nifty space were HDFC, Kotak Mahindra and SBI Life Insurance.
"Going ahead, Indian markets are likely to continue with its volatility as the earnings season gains momentum while COVID-19 cases continue its upward trajectory. Market would continuously watch out for government's course of action along with progress on vaccination drive in order to curb pandemic.
Investors would also keep an eye on management commentaries in the their post result concalls, given the current situation. This week investors would await US GDP data along with US Fed's monetary policy. Even President Joe Biden is expected to spell out his infrastructure spending plan, and the tax hikes to pay for it which could set the market tone for near term," says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.