The BSE benchmark sensex failed to maintain initial gains on profit-booking ahead of the expiry of the near-month March 2010 derivatives contracts on March 25.
The BSE benchmark resumed higher at 17,422.51 and shot up further to 17,530.79 on firm Asian cues before quoting at 17,461.26 at 1015 hours, still showing a gain of 50.69 points or 0.29 per cent from its previous close.
The market rebounded by a surprise hike in short term interest rates by the Reserve Bank of India (RBI) which it announced after trading hours on last Friday, yesterday.
The NSE 50-share nifty also moved up by 16.70 points or 0.32 per cent to 5,221.90 at 1015 hours from its last close.
Volatility may remain high in the near term as traders rollover positions in derivatives segment from the March 2010 series to the April 2010 series ahead of the expiry of the near-month March 2010 derivatives contracts on March 25.
Asian shares were mostly trading higher after gains on Wall Street yesterday with banks and materials stocks supporting the Australian market.
The key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan rose by between 0.35 per cent to 1.43 per cent while indices in China and Japan fell by between 0.25 per cent to 0.26 per cent.