Mumbai, July 12 (IANS): Positive global cues, combined with short covering and healthy monsoon rains, buoyed the Indian equity markets on Tuesday.

Consequently, the key indices traded on a higher note during the mid-afternoon session, as healthy buying was witnessed in metal, consumer durables and oil and gas stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) gained by 18.50 points or 0.22 per cent to 8,486.40 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,667.81 points, traded at 27,707.01 points (at 1.35 p.m.) -- up 80.32 points or 0.29 per cent from the previous close at 27,626.69 points.

The Sensex has so far touched a high of 27,761.18 points and a low of 27,667.81 points during the intra-day trade.

In contrast, the BSE market breadth was tilted in favour of the bears -- with 1,537 declines and 1,078 advances.

Both the key Indian indices ended in the positive territory during the previous trade session on Monday to reach their new closing highs for the last 11 months.

The barometer index on Monday edged up by 499.79 points or 1.84 per cent to 27,626.69 points, while the NSE Nifty gained by 144.70 points or 1.74 per cent to 8,467.90 points.

Initially on Tuesday, the benchmark indices opened on a firm note, in-sync with their Asian peers, especially the Japanese markets.

Other cues such as healthy progress of monsoon season and expectations of further economic reform measures enhanced investors' risk-taking appetite. 

However, gains were capped due to profit booking at higher levels and uncertainties over the upcoming macro-economic data like factory output -- Index of Industrial Production (IIP) -- for May and inflation figures for June.

"Nifty opened with marginal gains tracking positive global cues. It is currently holding the opening gains on buying support," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls. 

"Bank Nifty traded on a firm note aided by buying support. However, IT sector stocks traded with mixed sentiments due to profit booking at higher levels."