Indian equity benchmarks pared a portion of their early gains during the morning session on July 10 as profit booking emerged after the recent rally. The Sensex and Nifty had surged more than 1% earlier in the session before giving up part of their gains amid selling pressure at higher levels.

At 11:38 am, the BSE Sensex was trading 650.78 points, or 0.85%, higher at 77,392.60, while the NSE Nifty 50 gained 194.50 points, or 0.81%, to trade at 24,157.30. Market breadth remained positive, with 2,555 stocks advancing, 1,079 declining, and 183 remaining unchanged.

One of the primary reasons for the moderation in gains was profit booking after the Sensex had rallied nearly 1,000 points over the previous two trading sessions. Investors chose to lock in profits as benchmark indices approached key resistance levels.

Shares of Tata Consultancy Services also came off their intraday highs, reducing support for the broader market. The stock, which had initially gained around 4% after reporting better-than-expected June quarter revenue driven by strong demand from banking clients and support from a weaker rupee, trimmed its gains to around 1.3% during late morning trade.

Technical factors also influenced market sentiment. According to market analysts, the Nifty needs to sustain a decisive move above the 24,200 level to trigger further upside. The inability to maintain levels above this resistance encouraged short-term traders to book profits, leading to a pullback from the day's highs.

Despite the intraday moderation, overall market sentiment remained constructive, supported by broad-based buying across sectors and positive market breadth.