Equity indices trade on positive note; Sensex gains 130 pts, Nifty at 11,271

Amid a largely volatile trade session, the key Indian equity indices traded on a positive note on Tuesday morning, although they trimmed gains and retreated from the day`s highs.

Selling in banking, finance and telecom stocks weighed on the indices.

Around 10.25 AM, Sensex was trading at 38,111.84, higher by 130.21 points or 0.34% from the previous close of 37,981.63.

It opened at 38,176.86 and has so far touched an intra-day high of 38,235.94 and a low of 37,995.83 points.

The Nifty50 on the National Stock Exchange was trading at 11,271.90, higher by 44.35 points or 0.4% from its previous close.

Walmart Inc is in talks with Tata Group for an investment of up to $25 billion in the Indian salt-to-software conglomerate`s new "super app", Mint newspaper reported.

"Pharma and IT stocks will continue to do well this year. But, they have already run up a lot and are high in valuation. Banks must go up in a big way for the Nifty to go up," said Yogesh Nagaonkar, chief executive of Rowan Capital Advisors.

"There is no judgement yet on the moratorium (case). One has to see how the banks are recovering loans and look at the coming quarter results to see how they are doing, in terms of asset quality and the COVID-19 impact," he added.

Shares of Tata Consultancy Services rose 3% and were the top boost to the Nifty 50 index. This pushed the Nifty IT index higher by 1.3%.

Analysts said markets will get a direction after the Reserve Bank of India`s monetary policy decision. The RBI on Monday said it was rescheduling its policy meeting that was due to be held between Sept. 29 and Oct. 1.

Meanwhile, Asian markets largely opened higher, building on newfound momentum after bargain hunters helped a recovery in U.S. markets in the wake of last week`s selloff.

(With agency inputs)