Encouraging Q1 earnings, increased FII buying and positive global cues continued to bolster investor sentiments.
The BSE benchmark, the BSE Sensex was trading 104.61 points or 0.40% higher at 26,023.56 points, while the NSE Nifty was trading 28.90 points or 0.37% higher at 7,768.45 points at 11.00 am IST ahead of the wholesale inflation data for the month of July.
On Tuesday, data from Ministry of Statistics showed that the retail inflation in July had grown at 7.96% against 7.46% in previous month.
Foreign brokerages say the US Fed's Jackson Hole symposium on August 23 could be the next trigger for markets. "The US Federal Reserve is scheduled to hold its annual Jackson Hole economic symposium between August 21 and 23. Asset markets look at this event very closely for Feds hint on inflection points in monetary policy. Understandably, with a strong US economy and steady improvement in labour market conditions, there is palpable tension that Janet Yellen may use this event to forewarn markets about a possible turn in monetary policy," Deutsche Bank said in a report.
Among sectoral indices, the BSE Bankex (0.97%), BSE Capital Goods (1.05%) and BSE Consumer Durables (1%) were among the major gainers. Among individual stocks, Gail (2.69%), Sesa Sterlite (1.96%) and ICICI Bank (1.72%) were the major gainers.
Asian markets were showing a mixed trend. The Nikkei (0.7%), Hang Seng (0.2%), Straits Times (0.09%) and Shanghai Composite (0.28%) were trading in the green. Meanwhile, Taiwan Taiex (-0.07%), Jakarta Composite (-0.37%) and Kospi (-0.16%) were trading in the red.