The Indian equity markets posted strong gains on Wednesday, extending gains from the previous session after the conclusion of a long-awaited trade deal ‌with the ‌European Union (EU) raised hopes of an economic ‌boost.

As of 9.30 am, Sensex added 545 points, or 0.67 per cent, to reach 82,402, and Nifty gained 183 points, or 0.73 per cent to 25,359.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 gained 0.77 per cent, and the Nifty Smallcap 100 surged 1.17 per cent.

All sectoral indices were trading in the green, except FMCG and PSU bank which posted mild losses. Nifty oil and gas was the top gainer up 2.42 per cent as global oil prices surged. Brent touched $67, levels last seen in October.

Realty, metal and media were also notable gainers, up 1.54 per cent, 1.17 per cent and 1.45 per cent, respectively.

Immediate support lies at 25,000 zone followed by 24,800, while resistance lied at 25,300–25,400 zone, market watchers said.

Analysts said that the sustained FII selling sprung from relatively high valuation in India, the modest earnings growth and the continuing weakness in the rupee, while the DII buying is supported by fund flows and expectations of earnings recovery, they said.

A notable feature of the current market construct are huge, short positions from FIIs in index futures. This short position is being supported by sustained selling in the cash market but any news or event that triggers short covering can lead to a market rally, they added.

In Asian markets, China's Shanghai index edged up 0.49 per cent, and Shenzhen added 0.09 per cent, Japan's Nikkei lost 0.53 per cent, while Hong Kong's Hang Seng Index gained 2.31 per cent. South Korea's Kospi added 1.19 per cent.

The US markets ended largely in the green in the last trading session as Nasdaq advanced 0.91 per cent. The S&P 500 gained 0.41 per cent, and the Dow lost 0.83 per cent.

After the successful conclusion of the India-EU trade deal, investors look for cues from quarterly earnings to be reported in the week and focus on the Union Budget scheduled to be tabled on Sunday (February 1).

On January 27, foreign institutional investors (FIIs) sold net equities worth Rs 3,068 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 9,000 crore.