Sensex rebounds over 200 points on easing inflation

SensexMumbai: The benchmark BSE Sensex rebounded by over 200 points in early trade Tuesday on revival of buying by funds and retail investors after retail inflation eased to 30-month low of 7.31 percent.

The 30-share barometer recovered by 202.32 points, or 0.81 percent, to 25,209.30 with stocks of realty, capital goods, power, PSU, metal, auto and oil & gas sectors leading the gains.

The index had lost almost 1,093 points in the previous five sessions.

On the similar lines, the National Stock Exchange index Nifty reclaimed the 7,500-mark by recovering 59.30 points, or 0.80 percent, to 7,513.45.

Brokers said sentiments turned better after retail inflation dipped to a 30-month low of 7.31 percent in June and WPI index slid to a four-month low of 5.43 percent, raising hopes of a rate cut by the RBI at its policy review next month.

Besides, a firming trend on other Asian markets following overnight gains on the US bourses after better-than-forecast earnings from Citigroup buoyed sentiments, they said.

Among other Asian markets, Hong Kong's Hang Seng rose by 0.48 percent while Japan's Nikkei gained 0.78 percent in early trade today.

The US Dow Jones Industrial Average ended 0.66 percent higher in yesterday's trade.--PTI