Sensex recovers 130 points ahead of RBI policy

After two sessions of losses, the benchmark BSE Sensex rose over 130 points in early trade today on fresh spell of buying by participants ahead of RBI's monetary policy review.

The 30-share index, which had lost 559.50 points in the previous two sessions, recovered by 130.79 points, or 0.44%, to 29,253.06, with consumer durables, FMCG, oil & gas, auto and banking sector stocks leading the rise.

On similar lines, the National Stock Exchange index Nifty gained 26.00 points, or 0.30%, to 8,823.40 in early trade.

Brokers said besides mixed trend at other Asian bourses and overnight gains in the US markets, selective buying by cautious funds and retail investors ahead of RBI's policy review due later in the day influenced sentiments.

Among other Asian markets, Hong Kong Hang Seng moved up 0.24%, while Japan's Nikkei shed 0.27% in early trade.

The US Dow Jones Industrial Average ended 1.14% higher in yesterday's trade.