Sensex jumps 133 points; Nifty reclaims 8,000-level on rate cut hope

Mumbai: The benchmark BSE Sensex surged over 133 points and the NSE Nifty reclaimed the 8,000-level in early trade on Tuesday on the back of fresh foreign capital inflows amid renewed hopes of a rate cut by RBI.

Furthermore, a firming trend at other Asian markets tracking overnight gains on Wall Street gave sentiment a boost.

The 30-share barometer recovered by 133.24 points, or 0.50 percent, to 26,326.22, with all sectoral indices led by IT, consumer durables and realty landing in the positive zone with gains up to 1.31 percent.

The gauge had lost 25.93 points in yesterday's choppy trade.

The NSE Nifty index took back the 8,000-mark by rising 39.60 points, or 0.50 percent, to 8,016.70.

Brokers said fresh foreign capital inflows and renewed prospects of a rate cut by the Reserve Bank at its policy meet later this month largely due to positive macroeconomic numbers, including easing inflation, influenced mood.

Elsewhere in Asia, Hong Kong's Hang Seng was up by 0.69 percent while Shanghai Composite rose 0.71 percent in early trade. Financial markets in Japan remained closed on Tuesday for a public holiday. Trading will resume on Thursday.

The US Dow Jones Industrial Average ended 0.77 percent higher yesterday.