After yesterday’s plunge, the benchmark BSE Sensex rebounded by over 340 points to trade above the 27,000 mark in early trade today after retail inflation eased to 4-month low at 4.87% in April, raising hopes of a rate cut by the Reserve Bank.
Besides, a firming trend at other Asian markets influenced trading sentiment.
The 30-share barometer recovered sharply by 340.45 points, or 1.27 per cent, to 27,217.93, with all sectoral indices led by auto, healthcare and banking trading in the positive terrain with gains up to 1.80 per cent.
The gauge had plunged 629.82 points in yesterday’s trade on concerns that key reforms Bills may get delayed.
On similar lines, the National Stock Exchange index Nifty recaptured the 8,200 level by recovering 114 points, or 1.40 per cent, to 8,240.95.
Brokers said buying activity emerged on positive economic data, with retail inflation easing to a 4-month low of 4.87 per cent in April, boosting hopes of a rate cut by the Reserve Bank in its policy review next month.
However, industrial output growth slowed to a 5-month low of 2.1 per cent in March.
Among other Asian markets, Hong Kong’s Hang Seng index was up 0.23 per cent while Japan’s Nikkei was trading 0.04 per cent higher in early trade.
The US Dow Jones Industrial Average ended 0.20 per cent lower in yesterday’s trade.
The rupee strengthened by 9 paise at 64.08 against the US dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the American currency by exporters.
Forex dealers said besides the selling of the dollar, euro’s gains against the American currency overseas and a higher opening in the domestic equity market supported the rupee.
The local currency had lost 32 paise to close at 64.17 in yesterday’s trade on fresh dollar demand from importers.
Meanwhile, the benchmark BSE Sensex regained the 27,000 mark by surging 340.45 points, or 1.27 per cent, to 27,217.93 in early trade today.
PTI