The key domestic benchmark indices were trading in a positive terrain in the morning trading session tracking firm cues from fellow Asian peers after US market ended higher in overnight trade, extending post-election rally to the New Year.
Concerns over falling rupee, rising crude prices, and weak Q3 earnings may hit market sentiments.
Traders may also react to fresh hurdle in the implementation of the goods and services tax (GST) amid turf between the Centre and states over double control and compensation, which indicates that the April 1 deadline is likely to be missed.
At 10:10 a.m, the Bombay Stock Exchange bellwether Sensex was trading at 26696.97 up by 53.73 points or by 0.2 per cent, while the NSE Nifty was at 8214.7 points, trading higher by 22.45 points or by 0.27 per cent.
The BSE Sensex touched an intraday high of 26722.67 and an intraday low of 26632.95 while the NSE Nifty touched an intraday high of 8217.85 and an intraday low of 8190.85
The top gainers of the BSE Sensex pack were Tata Motors Ltd. (Rs. 491.00,+2.03 per cent), NTPC Ltd. (Rs. 167.45,+1.15 per cent), Oil And Natural Gas Corporation Ltd. (Rs. 194.90,+1.09 per cent), Bajaj Auto Ltd. (Rs. 2647.35,+1.04 per cent), Coal India Ltd. (Rs. 308.40,+1.02 per cent), among others.
Meanwhile, Reliance Industries Ltd. (Rs. 1077.75,-1.18 per cent), ITC Ltd. (Rs. 241.45,-0.74 per cent), Cipla Ltd. (Rs. 572.55,-0.28 per cent), Bharti Airtel Ltd. (Rs. 303.00,-0.21 per cent), HDFC Bank Ltd. (Rs. 1187.90,-0.21 per cent), were among the top losers on BSE.
The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total 2077 shares traded, 1496 shares advanced, 515 shares declined while 66 were unchanged.
On the global front, Asian stocks were trading higher today after data fueled confidence in the US economy, and as equity traders in Tokyo returned from holidays. The US markets closed higher in the previous trading session as US manufacturing posted the fourth straight month of faster expansion in December 2016 as new orders and output jumped, pointing to a growing economy.