Indian equity benchmarks continued to trade in the positive region during the afternoon session on Tuesday led by strong buying by participants mainly in the auto and consumer durables sector stocks among mixed cues from fellow Asian peers.

The domestic equity market witnessed some uneven weather in the November series, which saw the benchmark indices lose over 7 per cent. The first half of December 2016 is likely to keep the market participants on the edge. Investors should take any bounce with a pinch of salt.

The India Volatility Index (VIX), a scope of the market's short-term expectation of volatility, expanded. It has moved above the critical level of 15. The risk-off sentiment in equities picked up while the Nifty50 ended sharply low amid higher volatility.

The Employees Provident Fund Organization (EPFO) is seeking a clear exit policy on its equity investments from the government before deploying any more money in the market, reports CNBC-TV18.

The EPFO started putting some of its Rs 1 lakh crore-plus of assets under management into equity markets starting August 2015. Since then, it invested Rs 10,500 crore into equities.

In September, the government had directed the EPFO to increase its investments into equities to at least 10 % of total deposits.

The Sensex was upward 196.56 points at 26546.73 and the Nifty gained 63 points at 8189.90. About 1703 shares advanced against 691 declining shares on the BSE.

Buying continued in equity benchmarks as well as broader markets in afternoon trade with the Sensex rising nearly 200 points, aided by auto, banking & financials and telecom stocks.

The 30-share BSE Sensex was upward 185.42 points at 26535.59 and the 50-share NSE Nifty gained 59.40 points at 8186.30 while the BSE Midcap index climbed 0.9 % and Smallcap jumped 1.2 %.

Demonetisation effect: The government warned that if cash hoarders do not take advantage of the new amnesty scheme and get caught subsequently, they will be slapped with an 85 % penal income-tax. The government has already moved modification to the income-tax law to enable this window.

Some analysts have come out with a scheme, which can help investors make money even if they pay tax because the strength in the Indian equity market will only grow from here.

Indian households would invest over $100 billion in equities directly and through mutual funds in 2017. Almost 50 per cent of them will be first timers, Porinju Veliyath, MD & Portfolio Manager at Equity Intelligence India, said in a tweet on Tuesday, November 29.

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