Sensex rebounds 166 points on inflation cheer

Mumbai: The Sensex today bounced nearly 166 points to 30,354 in early part, taking comfort from positive inflation numbers, with the hope that earnings momentum by blue-chips will keep up foreign capital inflows.

A mixed trend prevailed in the rest of Asia.

The 30-share barometer jumped 165.90 points or 0.55 per cent, to 30,354.05. Sectoral indices, led by metal, realty, banking, FMCG, capital goods and PSU, rose by up to 1.02 per cent.

The gauge had retreated from record highs by falling 62.83 points in the previous session on Friday.

The NSE index Nifty recovered by 38.90 points, or 0.41 per cent, to 9,439.80.

Buying activity paced up on positive economic data after retail inflation fell sharply to 2.99 per cent in April, from 3.89 per cent in March, while inflation based on the wholesale price index slipped to a four-month low of 3.85 per cent in April.

Industrial output growth, however, weakened to 2.7 per cent in March, showed the IIP data based on the revised base year of 2011-12.

Hong Kong’s Hang Seng and China’s Shanghai Composite inched up. Japan’s Nikkei, however, logged losses.

The US Dow Jones Industrial Average had closed 0.11 per cent lower on Friday.