Sensex takes gains forward, climbs 305 points in early trade

The benchmark BSE Sensex rallied around 305 points and the broader NSE Nifty recaptured the 7,800-mark in early trade today on sustained buying by funds and retail investors amid firm overseas cues.

Moreover, covering-up of pending short positions by speculators in view of tomorrow’s May monthly expiry in the derivatives segment contributed to the rally.

Rising for the second straight session, the BSE 30-share barometer surged 304.86 points, or 1.20 per cent, to 25,610.33.

The gauge had gained 75.11 points in the previous session.

All sectoral indices, led by realty, IT and banking, were in the green, gaining up to 1.62 per cent.

Also, the NSE Nifty surged 98.10 points, or 1.26 per cent, to 7,846.85.

Brokers said pick-up in buying activity in recently beaten down stocks coupled with covering-up of pending short position by speculators ahead of tomorrow’s May month’s expiry in the derivatives segment had a positive impact too.

Besides, better-than-expected Q4 earnings by some corporates too influenced trading sentiments, they said.

Firming trend at other Asian markets, tracking overnight gains at the European and US markets on upbeat US home sales data was another factor behind today’s rally on the domestic bourses here.

In other Asian markets, Japan’s Nikkei was up 1.80 per cent while Hong Kong’s Hang Seng rose 2.44 per cent in early trade today. Shanghai Composite Index surged 0.24 per cent.

The US Dow Jones Industrial Average ended 1.22 per cent higher yesterday.