The markets are trading higher today led by a surge in oil & gas, capital goods and auto stocks. 

The benchmark index Sensex is up over 0.9 per cent while the Nifty has jumped 1.5 per cent.

In the currency markets, the rupee is trading above 50 to a dollar.

“Indian markets are blindly following global trends at this stage. Markets are likely to trade between 8000-12,000 in the medium term,” said R. Balakrishnan, Executive Director, Centrum Capital.

While buying activity has emerged in oil & gas, capital goods and auto sectors, selling is seen in FMCG, IT and consumer durable stocks.

The BSE  oil & gas index is trading 1.6 per cent higher and the capital goods index is up 0.6 per cent.

“The markets are about to reach the highly oversold levels from where the Nifty may bounce back. Till now, though the markets are giving bullish possibilities but they are failing to confirm it,” said Sanjeev Agarwal, Head (Equity), Globe Capital Market.

Among the Sensex stocks, ONGC leads the rally. It is up over 4 per cent.

Wall Street plunged for a second straight day on Thursday, falling to levels not seen in at least five years, as financial and energy stocks tumbled while demand for the safety of government debt spiked.

The S&P 500 index fell 6.7 percent to its lowest close since April 1997. The Dow Jones industrial average, meanwhile, fell 445 points, or 5.6 percent, to its lowest close since March 2003. The decline brings the Dow's two-day drop to 873 points, or 10.6 percent, its worst two-day percentage loss since October 1987.

The Nasdaq composite index fell 70.30, or 5.07 percent, to 1,316.12.

The Russell 2000 index of smaller companies fell 27.07, or 6.56 percent, to 385.31.

Most Asian indices are trading lower today.  Japan's Nikkei, Hong Kong's Hang Seng and China’s Shanghai Composite are trading in the red turf while South Korea’s Kospi is trading marginally in green.

(With AP inputs)