Sensex surges 317 points in early trade on key macro data

Mumbai: The benchmark Sensex rebounded almost 317 points to 26,621.40 and the broader Nifty reclaimed the 8,200-mark in early trade today on account of positive macro-economic data.

Retail or CPI inflation dipped to 14 month low of 4.20 per cent while the one based on wholesale prices or WPI fell for the second consecutive month to 3.39 per cent in October, raising hopes that RBI may go in for another rate cut in its monetary policy review next month.

Besides, a firming trend in other Asian markets, tracking rallies in the US and Europe as oil prices pushed up, buoyed sentiment here. The 30-share barometer spurted 316.77 points or 1.20 per cent to 26,621.40 with sectoral indices, led by realty, IT, teck, auto, oil & gas and PSU, recovering up to 1.40 per cent.

The gauge had lost 1,213.05 points in previous two days to nearly six-month low after fears of acute cash crunch arising out of demonetisation played out amid capital outflows by foreign funds.

The NSE index Nifty recaptured the 8,200-level by climbing 101.60 points or 1.25 per cent to 8,210.05. Among other Asian markets, Japan's Nikkei rose 1.21 per cent, while Hong Kong's Hang Seng was up 0.60 per cent in early trade. China's Shanghai Composite index gained 0.03 per cent.

The US Dow Jones Industrial Average had closed at another record high by gaining 0.29 per cent in yesterday's trade.