Early on D-Street | Nifty may continue upward march, but 12,081 critical resistance for short-term

Positive global sentiment after the US Fed’s dovish stance on future rate trajectory and government's measures to ease rules for shadow banks helped Indian equity benchmarks extend the gains into the second consecutive day on December 12.

The Union Cabinet on December 11 approved the Partial Credit Guarantee Scheme to help non-banking finance companies (NBFCs) and housing finance companies (HFCs) with liquidity and thereby to provide stimulus to the real estate sector and the economy at large by enhancing credit flow.

"This is a good initiative which will empower NBFCs & HFCs in short term liquidity stress, which, in turn, will enable them to contribute to the last mile lending to viable real estate players," said V K Vijaykumar, Chief Investment Strategist at Geojit Financial Services.

The 30-shares Sensex closed 169 points, or 0.42 percent, higher at 40,581.71 and Nifty shut shop at 11,971.80, with a gain of 62 points, or 0.52 percent.

BSE Midcap and Smallcap indices outperformed the benchmark Sensex, rising 0.69 percent and 0.59 percent, respectively.

Sectorally, the action was seen in metal, bank, auto and capital goods space while profit-taking was witnessed in IT and telecom stocks.

The rupee pared most of its early gains and settled marginally up at 70.83 against the US currency amid uncertainty over the delay in the deadline for imposition of higher US tariffs on Chinese goods.