MUMBAI: The benchmark Bombay Stock Exchange (BSE) Sensex rebounded by over 188 points in early trade Tuesday on revival of buying by funds and retail investors after retail inflation eased to 30-month low of 7.31 percent.

The 30-share barometer recovered 188.70 points, or 0.75 percent, to 25,195.68 with stocks of realty, capital goods, power, PSU, metal, auto and oil & gas sectors leading the gains.

The index had lost almost 1,093 points in the previous five sessions. On the similar lines, the National Stock Exchange index Nifty reclaimed the 7,500-mark by recovering 60.30 points, or 0.80 percent, to 7,514.45.

Brokers said sentiments turned better after retail inflation dipped to a 30-month low of 7.31 per cent in June and WPI index slid to a four-month low of 5.43 percent, raising hopes of a rate cut by the RBI at its policy review next month.

Besides, a firming trend on other Asian markets following overnight gains on the U.S. bourses after better-than-forecast earnings from Citigroup buoyed sentiments, they said.

Among other Asian markets, Hong Kong’s Hang Seng rose by 0.48 percent while Japan’s Nikkei gained 0.78 percent in early trade Tuesday.

The U.S. Dow Jones Industrial Average ended 0.66 percent higher in Monday’s trade.

Read More: Sensex Ends Flat, Above 25000; Nifty Holds 7450