Sensex, Nifty rebound on positive global signal

The 30-share index pared some opening gains to trade 384.99 points or 1.04 percent higher at 37,343.15 at 11:41 am, and the broader Nifty too gained 108.70 points or 1.00 percent to 11,035.25 at 11:41 am.

Mumbai: Domestic equity benchmark BSE Sensex rebounded by nearly 300 points in early trade on Wednesday, led by gains in index heavyweights RIL, HDFC and Infosys, amid positive cues from other global markets.

Easing inflation numbers, released after market hours on Tuesday, too helped the recovery in domestic market sentiment, traders said.

The 30-share index pared some opening gains to trade 384.99 points or 1.04 percent higher at 37,343.15 at 11:41 am, and the broader Nifty too gained 108.70 points or 1.00 percent to 11,035.25 at 11:41 am.

In the morning session Sensex gains to trade 122.51 points or 0.33 percent higher at 37,080.67; and the broader Nifty too gained 35.30 points or 0.32 percent to 10,961.15.

In the previous session on Tuesday, the 30-share index settled 623.75 points, or 1.66 percent, lower at 36,958.16, while the NSE Nifty slumped 183.80 points, or 1.65 percent, to 10,925.85.

Top gainers in the Sensex pack included Tata Steel, Vedanta, Yes Bank, Bajaj Finance, Hero MotoCorp, IndusInd Bank, Bajaj Auto, RIL and HDFC, rising up to 3.53 percent.

While, Sun Pharma, PowerGrid, Maruti, HCL Tech, TCS and Kotak Bank fell up to 4.26 percent.

Experts said investor sentiment got a boost as easing retail inflation left room for the Reserve Bank to go for another round of rate cut in October.

Retail inflation eased marginally to 3.15 percent in July on the back of softening fuel prices even as overall food prices moved up, showed government data on Tuesday.

Retail inflation was 3.18 percent in June 2019, while it stood at 4.17 percent in the year-ago period (July 2018).

The overall food inflation, measured on Consumer Food Price Index (CFPI), moved up to 2.36 percent during July from the revised 2.25 percent print for June 2019, as per data released by the Central Statistics Office (CSO).

Meanwhile, foreign portfolio investors sold shares worth a net of Rs 638.28 crore on Tuesday, while domestic institutional investors purchased shares worth Rs 201.53 crore, provisional data showed.

Elsewhere in Asia, Hang Seng, Kospi, Shanghai Composite Index, and Nikkei rebounded to trade higher in their respective late morning sessions, after US President Donald Trump delayed tariffs on electronic goods from China, assuaging investor concerns over US-China trade war.

Bourses on Wall Street too ended significantly higher on Tuesday.

On the currency front, the rupee appreciated 51 paise against its previous close to trade at 70.89 in early session.

Brent crude futures, the global oil benchmark, fell 1.09 percent to trade at 60.63 per barrel.