Benchmark indices are trading almost 1 percent higher in Muhurat trading, led by an increase in automotive and information technology stocks.
In the individual shares, Mahindra and Mahindra (M & M) are around 2 percent higher, while Tata Motors has risen nearly 1.5 percent. Infosys has so far gained more than 1 percent in day trading.
The frontline benchmark indices ended Saturday's last trading day of Samvat 2074 with a flat-rate mark given the sale in bank and FMCG counters. The S & P BSE Sensex slipped below the important 35,000 mark to reach 41,992 points. The Nifty50 index from NSE only gained 6 points and closed at 10,530. For Samvat 2074, the S & P BSE Sensex recorded a gain of more than 7 percent.
The rupee rebounded 12 pp to finish at $ 73 per USD on Tuesday as exporters' greenback sales had risen and crude oil prices had fallen.
Wall Street stock futures and Asian stocks held earlier gains Wednesday after the Democrats took control of the US House of Representatives. This strengthened the party's ability to block the political and economic agenda of President Donald Trump.
The victory of the Democratic House creates a clear hurdle for the Republicans, who can easily pass laws through both Congress chambers, which undermines the prospects for some of Trump's key economic proposals.
Whilst both results broadly agreed with market expectations, one reason why markets did not sell was the prospect of political stalemate unsettling investors. The dollar weakened against most major counterparts.
On the stock markets, the US S & P500 futures rose 0.3 percent, the broadest MSCI index for Asia-Pacific outside Japan 0.3 percent, and Japan's Nikkei 1.2 percent.
Oil prices fell to a low after a 2 percent decline the previous day. US crude oil futures reached an eight-month low as Washington granted sanctions to top buyers of Iranian oil, and Iran said it was able to sell as much oil as it needed to.
The US West Texas Intermediate (WTI) crude oil futures traded 0.5 percent to $ 61.91 a barrel, reaching a low of $ 61.31 on Tuesday. This is the lowest price since 16 March.
(with Reuters input)