Mumbai, Jan. 2 -- The key domestic indices traded with moderate gains in morning trade as the Nifty traded near the 26,250 mark. Trading activity remained positive amid sustained buying interest, reflecting improved risk appetite among investors. Market participants will now turn their focus to the upcoming earnings season.

Auto shares extended their rally for a fourth consecutive trading session.

At 10:25 IST, the barometer index, the S&P BSE Sensex advanced 343.99 points or 0.40% to 85,532.59. The Nifty 50 index gained 101.90 points or 0.39% to 26,248.45.

In the broader market, the S&P BSE Mid-Cap index added 0.47% and the S&P BSE Small-Cap index jumped 0.40%.

The market breadth was strong. On the BSE, 2,352 shares rose and 1,264 sh...