Mumbai, Sep 30 (PTI) Benchmark indices Sensex and Nifty bounced back in early trade on Tuesday, after falling sharply in the past seven trading days, helped by buying in bank stocks.

The 30-share BSE Sensex climbed 312.88 points to 80,677.82 in early trade. The 50-share NSE Nifty went up by 96.9 points to 24,731.80.

From the Sensex firms, Power Grid, Asian Paints, Bajaj Finance, Bharat Electronics, Titan, HDFC Bank, HCL Tech, UltraTech Cement, State Bank of India and ICICI Bank were among the major gainers.

However, Reliance Industries, ITC, Larsen & Toubro and Trent were among the laggards.

In the past seven trading days, the BSE benchmark has tanked 2,649.02 points or 3.19 per cent, and the Nifty dived 788.7 points or 3.10 per cent.

In Asian markets, Shanghai's SSE Composite index traded in positive territory, while South Korea's Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng quoted lower.

US markets ended higher on Monday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,831.59 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,845.87 crore, according to exchange data.

The Reserve Bank's Monetary Policy Committee began its three-day deliberations on Monday. The decision of the RBI rate-setting panel will be announced on Wednesday.

Global oil benchmark Brent crude dropped 0.79 per cent to USD 67.43 a barrel.

On Monday, the Sensex declined 61.52 points or 0.08 per cent to settle at 80,364.94. The Nifty slipped 19.80 points or 0.08 per cent to 24,634.90. PTI SUM SUM DR DR

Monetary policy deliberations spur market rebound as indices recover and institutional flows shift ahead of the policy announcement. Benchmark equity indices recovered in early trading after a seven day decline, led by buying in bank stocks while some heavyweight shares lagged. Domestic institutional investors were net buyers as foreign institutional investors sold equities, and global factors including a drop in Brent crude and mixed Asian markets influenced sentiment. Market participants awaited the outcome of ongoing Monetary Policy Committee deliberations, which were a proximate influence on trading activity.