Mumbai: After yesterday's plunge, the benchmark BSE Sensex rebounded by over 340 points to trade above the 27,000 mark in early trade Wednesday after retail inflation eased to 4-month low at 4.87 percent 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 percent, 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 percent.
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 percent, 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 percent 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 percent in March.
Among other Asian markets, Hong Kong's Hang Seng index was up 0.23 percent while Japan's Nikkei was trading 0.04 percent higher in early trade.
The US Dow Jones Industrial Average ended 0.20 percent lower in yesterday's trade.
