Sensex rebounds 117 pts on global cues

The BSE benchmark Sensex on Friday recovered nearly 117 points on buying funds on hopes of rate cut by RBI after softening inflation and easing worries over eurozone debt crisis.

The 30-share index gained 117.11 points, or 0.73 per cent, to close at 16,154.62 with metal, capital goods and power stocks leading the gains. It had lost 138 points in the previous session.

The broad-based National Stock Exchange index Nifty rose by 34.75 points, or 0.72, to 4,866.

Brokers said a firming trend in overseas markets as signs that Europe's debt crisis is easing supported the market.

Investors flocked to government bond sales in Italy and Spain, which eased concerned over debt crisis.

Also, hopes of change in RBI's tight monetary stance after food inflation remained subdued bolstered the sentiment.

The RBI next policy meeting is on January 24.

The metal sector index gained the most by 3.21 per cent to 10,756.45 as Tata Steel surged 7.11 per cent to Rs 415.70 and Coal India by 5.56 per cent to Rs 343.60.

The capital goods sector was second best performer by adding 2.86 per cent to 9,297 with Suzlon Energy gaining 8.72 per cent to Rs 22.45 and Larsen and Toubro by 3.84 per cent to Rs 1,172.60.

However, market major Reliance Industries and Infosys fell on sustained selling. While RIL lost 0.75 per cent to Rs 732.05 and Infosys fell by 0.12 per cent to Rs 2,585.55.

Infosys, the second-largest software services provider slumped 8.4 per cent yesterday after it cut its full-year sales forecast on weaker economic growth in major markets including Europe.