Mumbai, Sept. 17 -- The domestic equity indices continued to trade with modest gains in the early-afternoon trade, supported by optimism around ongoing trade negotiations between India and the United States, which the government described as positive and forward-looking. Investor sentiment was further boosted by expectations that the Federal Reserve will announce an interest rate cut later in the day.

The Nifty traded above the 25,300 level. IT shares extended gains for the second consecutive trading session.

At 12:30 ST, the barometer index, the S&P BSE Sensex, rallied 327.48 points or 0.40% to 82,708.17. The Nifty 50 index added 96.30 points or 0.37% to 25,335.40.

In the broader market, the S&P BSE Mid-Cap index rose 0.24% and the S&...