Sensex surges 265 points to regain 26K-level; Nifty above 7,900

Mumbai: The benchmark BSE Sensex reclaimed the 26,000-mark by surging 265 points and the NSE Nifty was above the 7,900-level in early trade on Wednesday on continued buying by participants on a bigger-than-expected interest rate cut by RBI yesterday amid a rebound in global markets.

The 30-share index rose by 265.94 points, or 1.03 percent, at 26,044.60 with all sectoral indices, led by metal, realty and banking, trading higher by up to 2.12 percent.

The gauge had rallied by 161.82 points in the previous session.

Similarly, the National Stock Exchange index Nifty went past the 7,900-level by climbing 80.95 points, or 1.03 percent, to 7,924.25.

Equity brokers said sentiments turned buoyant after RBI yesterday surprised markets with a bigger-than-expected 0.50 percent cut in repo rates to 6.75 percent, triggering buying activity.

The central bank also hiked limit for FPI investment in government bonds to 5 percent of the outstanding stock by March, 2018, a move that will bring in an additional Rs 1.2 lakh crore in G-Sec.

Besides, a firming trend at other Asian markets influenced trading sentiments here, they said.

Among other Asian markets, Hong Kong's Hang Seng was up by 1.16 percent, Japan's Nikkei gained 1.84 percent, while Shanghai Composite index was trading higher by 0.49 percent in early trade today.

The US Dow Jones Industrial Average ended 0.30 percent higher in yesterday's trade.