The Bombay Stock Exchange benchmark Sensex on Monday recovered sharply by over 295 points in opening trade on fresh capital inflows by funds after the government said the Dubai crisis should not have any major impact.

Firming trends on other Asian markets too buoyed the trading sentiments here.

The Sensex shot up by 295.96 points, or 1.77 per cent to 16,927.97 points in opening trade. It had lost over 566 points in the past two sessions.

The wide-based National Stock Exchange index Nifty also recovered by 87.15 points, or 1.76 per cent to 5,028.90.

Investors’ confidence got a booster after the government said the Dubai crisis should not have any major impact on factors like employment and exports.

Stock brokers said the impact of crisis on domestic bourses would be short-lived as the exposure of the India and Indian corporate to Dubai is not significant.

Besides, fresh spell of capital inflows by foreign funds and selective buying by retail investors also influenced the trading sentiments, they said.

All the sectoral indices, led by realty and metals, were trading in positive zone with gains up to 2.54 per cent.

More In: Markets | Business