Sensex gains 56 points in early trade

Snapping a six-session long losing streak, the BSE benchmark index Sensex today recovered by over 56 points in early trade on the back of fresh buying by funds and retail investors amid a firm trend in Asian markets.

The 30-share barometer rose by 56.22 points, or 0.30 per cent, to 18,365.59 with stocks of realty, capital goods, IT and auto sectors leading the recovery. The index lost almost 593 points in the past six sessions.

The wide-based National Stock Exchange index Nifty moved up by 10.25 points, or 0.18 per cent, to 5,584.30.

Brokers said the trading sentiment turned slightly better on selective buying by funds and retail investors, tracking a firm trend in Asian markets.

In Asia, Hong Kong's Hang Seng rose by 0.24 per cent, while the Japan's Nikkei by 1.33 per cent in early trade.

The US Dow Jones Industrial Average had ended 0.23 per cent higher in previous session on Friday.

GLOBAL MARKET NEWS

Nifty futures on the Singapore Exchange rose 0.29 percent. The MSCI-Asia Pacific index excluding Japan was up 0.53 percent.

Hope that U.S. politicians would find common ground to steer clear of the fiscal cliff boosted stocks on Friday, though the gains were not enough to offset the week's losses.

Asian shares rose on Monday, boosted by a positive tone in U.S. equities last week, while the yen fell to a near seven-month low against the dollar on expectations a new government after next month's election in Japan may deliver more stimulus.

FACTORS TO WATCH

Day 1 of the RBI-ADB conference on managing capital flows. RBI deputy governor Subir Gokarn and H.R. Khan, as well as executive director Deepak Mohanty will attend the event.

C. Rangarajan, head of the Economic Advisory Council to the Prime Minister Manmohan Singh will speak at an event hosted by the Export-Import Bank of India and will address a press conference. (0530 GMT)

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