Market benchmark BSE Sensex touched the 40,000-mark for the first time since June as it jumped over 250 points in early trade on Wednesday. After reclaiming the 40,000 mark, Sensex pared some gains to trade 128.48 points, or 0.32 per cent, higher at 39,960.32, and the broader NSE Nifty advanced 35.85 points, or 0.30 per cent, to 11,822.70 in early trade.
In the previous session, the 30-share Sensex ended 581.64 points, or 1.48 per cent, higher at 39,831.84. Likewise, the Nifty rallied 159.70 points, or 1.37 per cent, to close at 11,786.85. Top gainers in the Sensex pack included Bharti Airtel, L&T, Infosys, ITC, Vedanta, HDFC Bank, Bajaj Auto, Kotak Bank and Sun Pharma rose up to 2 per cent.
On the other hand, Tata Motors, Yes Bank, IndusInd Bank, Tata Steel, ICICI Bank and TCS fell up to 3 per cent.
However, gains were capped as investors also took cues from weakness in other Asian equities amid reports of a possible delay in the US-China trade deal, traders said. Market is also awaiting cues from US Federal Reserve's policy decision, scheduled to be announce later in the day. Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading on a negative note. On Wall Street, stock exchanges too finished in the red on Monday.
The rupee, meanwhile, depreciated 11 paise against the US dollar to trade at 70.95 in early session.