Mumbai: The benchmark BSE Sensex recovered from 20-month low by rising over 126 points in early trade on Tuesday, mainly driven by value-buying in recently battered blue-chip stocks amid firm Asian cues.
Besides, covering-up of short positions by speculators also supported the recovery. The 30-share index was trading higher by 126.72 points, or 0.52 per cent, at 24,315.09 on the back of recovery in the stocks of power, banking, IT and healthcare companies.
The gauge has lost almost 666 points in the previous three straight sessions following a massive dip in exports and weak global cues after crude slipped below USD 28 a barrel. Also, the NSE Nifty rose by 42.50 points, or 0.57 per cent, to trade at 7,393.50. Brokers said value-based buying in blue-chips after recent losses and covering of short positions by speculators helped markets' mood to improve.
Shares of Reliance Industries were trading higher by 0.22 per cent at Rs 1,020.25 ahead of its quarterly earnings, to be released later in the day. Besides, a firming trend at other Asian markets ahead of the release of Chinese economic growth data for 2015 triggered a fresh round of buying activity, they said. Among other Asian markets, Hong Kong's Hang Seng was up by 0.24 per cent while Japan's Nikkei up 0.09 per cent in early trade today.
Shanghai Composite index marginally was up by 0.02 per cent. US markets remained closed yesterday for the Martin Luther King Day national holiday.