Nine of 11 sector gauges compiled by National Stock Exchange were trading higher.

The S&P BSE Sensex and NSE Nifty 50 Index held on to gains after the Finance Ministry's Economic Survey report pegged India's real GDP growth at 7 per cent for financial year 2019-20. The projection is higher than a growth rate of 6.8 per cent - the lowest in five years - clocked by the economy for the year ended March 31. If the projection comes true, it could help India regain the status of world's fastest-growing major economy by overtaking China.

Gains in equity markets were paced by buying interest in financials, banking and realty shares. However, the upside were capped as select metal, FMCG and pharma shares witnessed selling pressure.

As of 12:29 pm, the Sensex rose 0.2 per cent or 81 points to 39,920 and the NSE Nifty 50 Index advanced 0.25 per cent or 30 points to 11,947.

Growth is expected to pick up in 2019-20 as macroeconomic conditions continue to be stable while structural reforms initiated in the previous few years are continuing on course, the Economic Survey prepared by Chief Economic Adviser Krishnamurthy Subramanian said.

The government stood by its path of fiscal consolidation in financial year 2018-19, stated the Economic Survey, which expects the general fiscal deficit at 5.8 per cent in 2018-19 as against 6.4 per cent in 2017-18.

In the equity markets, nine of 11 sector gauges compiled by National Stock Exchange were trading higher led by the Nifty PSU Bank and Nifty Realty indexes 1.5 per cent gain. Private Bank, Bank, Auto, Financial Services and Media sector gauges also rose between over 0.5 per cent each.

On the flipside, Nifty Metal Index was top loser, down 0.6 per cent.

UPL was top gainer in the Nifty 50 basket of shares, the stock rose 5 per cent to Rs 684. Indiabulls Housing Finance, IndusInd Bank, Tata Motors, Bharti Airtel, Eicher Motors, UltraTech Cement, Kotak Mahindra Bank and Bajaj Finserv were also among the gainers.

On the flipside, Titan, HCL Technologies, Bharti Infratel, BPCL, Coal India, Sun Pharma, Cipla, NTPC and HDFC were among the laggards.