Sensex rebounds 330 pts as banks rally

The BSE Sensex rose 330 points on Tuesday, regaining much of the lost ground of the previous session, on buying in blue chips such as Reliance Industries and SBI on increased FII inflows and a firm global trend.

The Bombay Stock Exchange 30-scrip Sensex, which had lost 371 points on Monday on profit-booking, spurted 330.25 points, or 1.96 per cent to 17,193.55.

The 50-stock NSE index Nifty recovered 111.95 points, or 2.20 per cent to 5,199.25. It had lost 117.40 points in the last session.

The most-heaviest on the benchmark, RIL shot up 2.51 per cent after a loss of over 3 per cent yesterday.

State-owned SBI jumped 3.53 per cent on the government's decision to infuse Rs 7,900 crore capital in the bank. Top private lender ICICI Bank surged 5.87 per cent on rise in third quarter earnings.

A firm trend in Asian markets and higher openings in Europe amid reports that European leaders have agreed on a treaty to resolve euro-zone debt crisis improved investor sentiment.

The banking index gained the most, rising 3.84 per cent to 11,390.70.

In the IT sector, Infosys rose 1.38 per cent, Tata Consultancy Services by 1.89 and Wipro by 0.88 per cent.

Bajaj Auto, Mahindra and Mahindra, Hero Motocorp, Tata Motors, Jindal Steel, Sterlite Industries, Tata Steel, Sun Pharma, DLF, Hindalco, Larsen and Toubro and BHEL recorded handsome gains.