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However, the indices gave up some of those gains in mid-morning trade. At 10:37 am, the Sensex traded 232.99 points - or 0.58 per cent - higher at 40,494.12, while the Nifty was up 46.30 points - or 0.39 per cent - at 11,859.80.
Infosys, Sun Pharmaceutical, Adani Ports, Wipro and Tech Mahindra, trading between 3.08 per cent and 4.37 per cent higher, were the top gainers in the 50-scrip benchmark index.
On the other hand, UPL, Power Grid, ICICI Bank, HDFC and Axis Bank, down 1.30-2.96 per cent each, were the worst hit among 21 Nifty laggards.
Infosys, Tata Consultancy Services and Reliance Industries were the biggest contributors to the gain in Sensex.
Stocks of export-heavy industries such as IT and pharmaceuticals jumped as the dollar appreciated against a group of currencies overseas. The dollar index - which tracks the greenback against six other currencies - reversed early losses to climb up 1 per cent.
Globally, investors had initially wagered that a possible Democratic sweep by Joe Biden could ease political risk while promising a huge boost to fiscal stimulus, hitting the safe-haven dollar and bonds. But the mood quickly sobered on signs President Donald Trump could well snatch Florida and was much closer in other major battleground states than polls had predicted. (Catch Latest Updates Here)
Other Asian share markets were largely lower. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.6 per cent, though Japan's Nikkei was still ahead by 1.4 per cent.
The E-Mini S&P 500 futures veered wildly between negative and positive, and were last up 0.36 per cent, indicating a wobbly start for US markets on Wednesday.
The EUROSTOXX 50 and FTSE futures lost 0.5 per cent and 0.8 per cent respectively, indicating a weak start for European markets.
Investors are still awaiting the outcome of Federal Reserve and Bank of England meetings this week, which are expected to at least give a nod to further stimulus