Sensex jumps 130 points as investors continue buying

Mumbai: The benchmark BSE Sensex surged by nearly 130 points in early trade today on continued buying by investors amid hopes of rate cut by the Reserve Bank after weak IIP numbers.

A higher trend at other Asian markets as investors await developments in last-ditch talks aimed at a new bailout deal for Greece, influenced sentiment, brokers said.

The 30-share barometer was trading higher 129.81 points, or 0.46%, at 27,791.21 with healthcare, teck, IT, oil & gas, realty and consumer durables sector leading the gains.

The Sensex had gained 87.74 points in the previous session. On similar lines, the NSE Nifty recaptured the 8,400-mark by rising 44.25 points, or 0.52%cent, at 8,404.80.

Growth in industrial production in May slowed to 2.7% from 5.6% a year ago, dragged down by manufacturing, strengthening the case for an RBI rate cut, triggering buying by participants.

Among other Asian markets, Hong Kong’s Hang Seng was up 0.19%, Japan’s Nikkei gained 1.17% and the Shanghai Composite Index rose 2.28%.

The US Dow Jones Industrial Average ended 1.21% higher in Friday’s trade.