Sensex rebounds 398 points in opening trade

Snapping its six-session losing streak, the Bombay Stock Exchange benchmark Sensex made a strong comeback by rising nearly 400 points in opening trade today, supported by a rebound on other Asian bourses.

The 30-share BSE barometer, which has lost nearly 1,455 points in the past six sessions to hit a 14-month low, rose by 398.55 points to 17,256.46 as stocks led by the recently battered technology sector moved into positive terrain with gains of up to 2.96 per cent in morning trade.

Similarly, the broad-based National Stock Exchange Nifty index shot up by 107.95 points to 5,180.80.

Brokers said a fresh spell of buying by funds and investors powered the Sensex's rise in initial trade, spurred by a firming trend in other Asian markets following overnight gains in the US after the Federal Reserve announced that it would keep interest rates near zero for at least two years.

In addition, covering up of short positions by speculators supported the recovery, they said.

In the Asian region, Hong Kong's Hang Seng index rose by 3.70 per cent, while Japan's Nikkei gained 1.72 per cent in morning trade today. The US Dow Jones Industrial Average ended 3.98 per cent higher in the previous session.