The key equity indices were trading in a narrow range with decent gains in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was up 144.43 points or 0.40% at 35,923.50. The Nifty 50 index was up 47.35 points or 0.44% at 10,784.95. The Nifty was trading below 10,800 mark after opening above that level. Cement shares advanced. Most telecom shares rose.

Among secondary barometers, the BSE Mid-Cap index was up 0.99%. The BSE Small-Cap index was up 0.90%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1491 shares rose and 745 shares fell. A total of 137 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. Asian 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.

Cement shares advanced. Ambuja Cements (up 0.67%), ACC (up 0.62%) and UltraTech Cement (up 0.23%), edged higher.

Grasim Industries was up 1.72%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Most telecom shares rose. MTNL (up 8.67%), Vodafone Idea (up 2.17%) and Reliance Communications (up 1.28%), edged higher. Bharti Airtel (down 0.28%) and Tata Teleservices (Maharashtra) (down 0.51%), edged lower.

SORIL Infra Resources was locked in 5% upper circuit at Rs 293.60 after the company initiated the process to foray into financial services business. The announcement was made after market hours yesterday, 12 December 2018.

SORIL Infra Resources informed that to participate in the lending opportunities in unserved rural India, the company has initiated the process to foray into financial services business with primary focus on providing financial services in rural India. For this, the company has started the necessary process of acquiring an existing NBFC (subject to necessary compliances and approvals), as wholly owned subsidiary of the company, to undertake lending business in the rural markets.

On the domestic data front, 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.

Overseas, 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 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.

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.