Mumbai, Nov 7 (IANS): Indian equity markets surged during the mid-afternoon trade session on Monday, as short covering, value buying and lessened chances of a US rate hike buoyed investors' sentiments.

Both the key indices traded with substantial gains during the mid-afternoon trade session, as healthy buying was witnessed in healthcare, banking and metal stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 88.05 points or 1.04 per cent, to 8,521.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,552.27 points, traded at 27,525.59 points (2.00 p.m.) - up 251.44 points or 0.92 per cent, from its previous close at 27,274.15 points.

The Sensex has so far touched a high of 27,591.15 points and a low of 27,452.37 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bulls -- with 2,075 advances and 675 declines.

On Friday, the benchmark indices were dragged lower by global cues. The barometer index had declined by 156.13 points or 0.57 per cent, while the NSE Nifty edged down by 51.20 points or 0.60 per cent.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded firm up due to short covering and lower level buying.

"IT stocks faced resistance at higher levels due to profit booking. However, banking, pharma, auto, oil-gas, textile and aviation stocks traded firm on buying support," Desai said.

"Media-entertainment, FMCG, power and cement stocks traded with firm sentiments on lower level buying. USD/INR futures prices traded with sideways sentiments."