The benchmark BSE Sensex rebounded by over 188 points in early trade today on revival of buying by funds and retail investors after retail inflation eased to 30-month low of 7.31 per cent.
The 30-share barometer recovered 188.70 points, or 0.75 per cent, 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 per cent, 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 per cent, 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 US 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 per cent while Japan's Nikkei gained 0.78 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.66 per cent higher in yesterday's trade.