Sensex recovers 125 points in early trade on funds buying

Mumbai, May 22 : The benchmark BSE Sensex rebounded over 125 points in early trade today after yesterday’s fall as funds and investors made fresh purchases in consumer durables, realty, metal and PSU sector stocks amidst a firming trend in Asian markets.

The 30-share index, which had slipped from record highs by falling 78.86 points in yesterday’s trade, recovered by 125.37 points, or 0.52 per cent, to trade at 24,423.39.

All the sectoral indices, led by realty and consumer durables, were trading in the positive zone with gains up to 7.77 per cent.

In a similar fashion, the broader National Stock Exchange index Nifty moved up by 18.45 points, or 0.25 per cent, to 7,271.35.

Brokers attributed the recovery in stocks to revival of buying by funds and investors amidst a firming trend on other Asian bourses on indication of an improvement in Chinese manufacturing activity and overnight gains on the US markets.

Jewellery stocks were back in demand after the Reserve Bank yesterday eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports.

Stocks of Titan Company climbed up by 10.40 per cent to Rs 342.40, P C Jewellers rose 15.93 per cent to Rs 120.10 and Gitanjali Gems surged 14.17 per cent to Rs 104.35.

Among other Asian markets, Hong Kong’s Hang Seng index rose by 0.38 per cent, while Japan’s Nikkei gained 1.60 per cent in early trade today.

The US Dow Jones Industrial Average ended 0.97 per cent higher in yesterday’s trade.