MUMBAI: The BSE benchmark Sensex rose by 198 points in early trade on Tuesday on sustained buying by funds and retail investors, buoyed by easing inflation and a firming trend on other Asian bourses.
The 30-share BSE index, which gained almost 152 points in the previous two sessions, rallied further by 198.14 points, or 1.22 per cent, to 16,387.50, with all sectoral indices, led by auto and capital goods, trading in the positive zone. The wide-based National Stock Exchange Nifty Index moved up by 61.30 points to 4,935.20 points.
Brokers said continued buying by participants triggered by easing inflation which fell to a two-year low of 7.47 per cent in December and reports of a firming trend on the other Asian bourses following China’s faster-than-expected growth in the fourth quarter, supported the upside in stock prices.
In the Asian region, Hong Kong’s Hang Seng Index rose by 0.93 per cent and Japan’s Nikkei Index by 0.63 per cent in morning trade on Tuesday. The rupee strengthened by 32 paise to 51.05 per dollar on the Interbank Foreign Exchange market in early trade today, supported by continued foreign fund inflows.
The rupee had gained 15 paise to close at nearly one-and-a-half month high of 51.37/38 against the dollar on Monday on the back of late recovery in equities and mild dollar selling.