The market pared gains after hitting fresh intraday high in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 132.04 points or 0.37% at 35,911.11. The Nifty 50 index was up 42.90 points or 0.40% at 10,780.50.

Among secondary barometers, the BSE Mid-Cap index and the BSE Small-Cap index were up by 0.53% each.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1505 shares rose and 893 shares fell. A total of 148 shares were unchanged.

Shares extended recent gains amid positive global cues and strong domestic economic data. Sentiment were also boosted after the appointment of the new Reserve Bank of India (RBI) governor and as uncertainty surrounding state election outcome receded. Global shares were positive after British Prime Minister Theresa May survived a no-confidence vote, and as China appeared to be taking more steps to meet US demands to open its markets.

India's industrial production (base year 2011-12=100) surged at 11-month high pace of 8.1% in October 2018, compared with 4.5% growth recorded in September 2018. The industrial production growth for September 2018 has been retained unchanged from 4.5% increase reported provisionally.

The all-India general CPI inflation dipped to 17-month low of 2.33% in November 2018 (new base 2012=100), compared with 3.38% in October 2018. The core CPI inflation eased to 5.71% in November 2018 compared with 6.20% in October 2018.

In the equity market, Yes Bank slipped 2.86% to Rs 181.45 on profit booking after a recent strong rally.

Oil sector stocks rose. Among public sector oil marketing companies, HPCL (up 3.09%), BPCL (up 2.2%) and Indian Oil Corporation (up 1.5%), edged higher.

Among oil exploration and production companies, ONGC (up 1.16%), Reliance Industries (up 0.32%) and Oil India (up 0.17%), edged higher.

FMCG shares advanced. Godrej Consumer Products (up 4.22%), Britannia Industries (up 2.95%), Colgate Palmolive (India) (up 2.70%), Dabur India (up 1.73%), GlaxoSmithKline Consumer Healthcare (up 1.18%), Hindustan Unilever (up 1.14%), Tata Global Beverages (up 0.92%), Nestle India (up 0.91%), Bajaj Corp (up 0.68%), Procter & Gamble Hygiene & Health Care (up 0.33%) and Marico (up 0.07%), edged higher. Jyothy Laboratories was down 0.21%.

Overseas, European stocks opened slightly higher Thursday morning, amid signs of cooling trade tensions between the world's two largest economies.

Meanwhile in Europe, UK Prime Minister Theresa May won a crucial vote of confidence in her leadership on Wednesday evening. May won the leadership challenge by 200 votes to 117 votes against her in the ballot of Conservative members of parliament (MPs). May needed a simple majority (at least 159 out of 315 Conservative MPs) to win the confidence vote. Winning this vote means her leadership cannot be challenged for another year now.

Asian shares moved higher on Thursday, building on the momentum seen on Wall Street overnight, as China appeared to be taking more steps to meet US demands to open its markets.

According to media reports, Beijing is working to increase access to foreign companies, a move aimed at smoothing US-China trade relations. The plan would replace the country's Made in China 2025 initiative, reports said. Made in China 2025 is a framework aimed at making China a leader in industries like clean-energy cars and robotics.

US stocks came off session highs but still closed higher Wednesday after a series of developments boosted expectations that a US-China trade deal could be reached in the coming months.

On the US data front, the consumer-price index, a key measure of inflation, showed no price growth between October and November, the Labor Department announced Wednesday. Core prices, which eliminate volatile food and energy costs, rose 0.2% month-over-month.