Mumbai, Oct 3 (IANS): Positive global cues, coupled with value buying and higher crude oil prices, lifted the Indian equity markets during the mid-afternoon trade session on Monday.

Healthy buying was witnessed in automobile, banking and capital goods stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) surged by 112.90 points or 1.31 per cent to 8,724.05 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,997.29 points, traded at 28,195.45 points (at 2.15 p.m.) -- up 329.49 points or 1.18 per cent from the previous close at 27,865.96 points.

The Sensex has so far touched a high of 28,229.98 points and a low of 27,919.89 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bulls -- with 2,127 advances and 619 declines.

On Friday, the Indian equity markets closed flat as investors were seen reluctant to chase prices after tension between India and Pakistan escalated, and due to an outflow of foreign funds.

The barometer index had inched up by 38.43 points or 0.14 per cent, while the NSE Nifty marginally gained 19.90 points or 0.23 per cent.

"The markets extended gains on the back of short covering from last week. Value buying and higher global crude oil prices also kept the sentiments buoyed," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"Global cues are largely positive, especially the Asian and European indices. Investors are looking forward to the Monetary Policy Committee (MPC) meet today."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded firm tracking positive global cues and buying support.

"IT stocks witnessed some recovery from lower levels due to short covering. Banking, pharma and auto stocks held the initial gains on buying suppor"," Desai said.

"Textile, oil-gas and aviation stocks also traded firm. FMCG, power and cement stocks also held the initial gains on strong buying support."