BSE Sensex rebounds 188 pts in early trade on easing inflation

Jul 15 2014, 10:28 IST
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Shares rose on Tuesday after Citigroup's earnings and a fresh round of merger and acquisition activity in the US healthcare industry lifted global share prices. (Photo: Reuters) Shares rose on Tuesday after Citigroup's earnings and a fresh round of merger and acquisition activity in the US healthcare industry lifted global share prices. (Photo: Reuters)
SummaryInflation data seen countering negative vibes due to the deficient monsoon, traders add.

The benchmark BSE Sensex rebounded by over 188 points in early trade today on revival of buying by funds and retail investors after retail inflation eased to 30-month low of 7.31 per cent.

The 30-share barometer recovered 188.70 points, or 0.75 per cent, to 25,195.68 with stocks of realty, capital goods, power, PSU, metal, auto and oil & gas sectors leading the gains.

The index had lost almost 1,093 points in the previous five sessions.

On the similar lines, the National Stock Exchange index Nifty reclaimed the 7,500-mark by recovering 60.30 points, or 0.80 per cent, to 7,514.45.

Brokers said sentiments turned better after retail inflation dipped to a 30-month low of 7.31 per cent in June and WPI index slid to a four-month low of 5.43 per cent, raising hopes of a rate cut by the RBI at its policy review next month.

Besides, a firming trend on other Asian markets following overnight gains on the US bourses after better-than-forecast earnings from Citigroup buoyed sentiments, they said.

Among other Asian markets, Hong Kong's Hang Seng rose by 0.48 per cent while Japan's Nikkei gained 0.78 per cent in early trade today.

The US Dow Jones Industrial Average ended 0.66 per cent higher in yesterday's trade.

NSE Nifty index jumps nearly 1 pct after inflation eases; ICICI Bank shares gain

(Reuters) NSE Nifty index gains 0.85 percent, heading towards snapping a five-day selling streak as rate-sensitive stocks surge after June consumer inflation slowed to a low of 7.31 percent ahead of the central bank's policy review on Aug. 5.

The inflation data is seen countering the negative vibes due to the deficient monsoon so far, traders add.

India's inflation eased in June after the new government curbed farm exports, but a growing risk that drought will damage summer crops could encourage the central bank to keep interest rates on hold at a policy review meeting early next month.

ICICI Bank shares gain 1.7 percent, while Tata Motors is up 1.6 percent

Gains also track higher Asian shares after Citigroup's earnings and a fresh round of merger and acquisition activity in the U.S. healthcare industry lifted global share prices.

Pre-Open: BSE Sensex, NSE Nifty to start higher after June inflation eases to record low

(Reuters) BSE Sensex, NSE Nifty are set to open higher on Tuesday as consumer inflation slows to a record low of 7.31 percent ahead of

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