Sensex rises 132 points in early trade on hopes of rate cut by RBI

Market benchmark Sensex rose over 132 points in opening trade on Monday on optimistic buying amid hopes of a rate cut by Reserve Bank of India (RBI) and a firm global trend.

The 30-share index, which had lost 72.22 points in the previous session, recovered by 132.46 points or 0.52%, to 25,402.10, with realty, IT, teck, auto, power and capital goods stocks leading the gains.

The NSE Nifty also perked up by 35.00 points or 0.45% to 7,748.05.

Brokers said apart from positive cues from global market, widening of positions by investors and funds on expectations that RBI might lower key interest rates at its first bi-monthly monetary policy review for 2016-17 on Tuesday influenced sentiment.

Among other Asian markets, Japan's Nikkei was up 0.21% in early trade. Indexes in Hong Kong and China are closed on Monday for a public holiday.

The US Dow Jones Industrial Average ended 0.61% higher in Friday's trade.