Sensex climbs 340 points in early trade

Mumbai: After Tuesday’s plunge, the benchmark BSE Sensex rebounded by over 340 points to trade above the 27,000 mark in early trade on Wednesday 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%, 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 Tuesday’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% 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% in March.

Among other Asian markets, Hong Kong’s Hang Seng index was up 0.23%   while Japan’s Nikkei was trading 0.04 per cent higher in early trade.

The US Dow Jones Industrial Average ended 0.20% lower in Tuesday’s trade.


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