The Indian equity benchmark indices traded higher around noon on Monday led by gains in FMCG, auto and realty stocks. However, weak global cues and disappointment over Budget proposals limited the gains.

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The market witnessed value buying at low levels after declining over 2.5 percent on the Budget day as several proposals and no announcements regarding the LTCG tax spooked investors.

At 12:50 pm, the Sensex was trading at 39,889.16, up 153.63 points or 0.39 percent and the Nifty was trading at 11,708.15, up 46.30 points or 0.40 percent.

Among sectors, Nifty FMCG, Nifty Auto, Nifty Realty and Nifty Media were trading with over 1 percent gains while Nifty IT and Nifty PSU Banks traded in the red.

Nestle India, Hindustan Unilever, Britannia Industries, Asian Paints and Bharat Petroleum Corporation Ltd were the Nifty50 top gainers while Bharti Infratel, ITC, YES Bank, Tata Consultancy Services and Tata Motors were the top losers.

India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December.

Shares of ITC shed nearly 6 percent after finance minister Nirmala Sitharaman in Union Budget 2020 proposed to increase excise duty on cigarettes across various lengths. Downgrades by various brokerages also weighed on the sentiment.

Commercial vehicle manufacturer Ashok Leyland reported 40 percent drop in total sales in January year-on-year. The company sold 11,850 units last month compared to 19,741 vehicles it sold in January 2019. Total domestic sales during the month fell 41 percent to 10,850 units from 18,533 units in the year-ago month.

Globally, Asian shares were dragged to near two-month lows on Monday by Chinese markets, which plunged on their first trading day after a long break on fears the coronavirus epidemic would hit demand in the world's second-largest economy.

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