Snapping out of a two-day decline, the Bombay Stock Exchange benchmark Sensex today rebounded

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by over 173 points on the emergence of buying in fundamentally strong stocks, available at attractive levels, following a firming global trend and a steadily progressing monsoon.

The Sensex, which had lost 67 points in the last two trading sessions, bounced back by 173.04 points to 17,614.48 after touching the day's high of 17,643.14 as the consumer durables, IT and metal sectors attracted heavy buying.

In the BSE-30 components, 25 shares ended with gains while five declined. The Sensex was the best performer among the world’s 20 largest equity markets in the second quarter.

The broad-based National Stock Exchange index Nifty rose by 53.15 points to 5,289.05 after touching a high of 5,297.45 as heavyweight counters such as Infosys Technologies, HDFC Bank, State Bank of India and Reliance Industries recorded handsome gains.

The trading sentiment turned bullish following reports of a sharp rebound in Asian stock markets and higher opening in Europe this afternoon. While Hong Kong rose 1.22 per cent, Shanghai and Tokyo went up by 1.92 per cent and 0.77 per cent respectively.

Steady progress in monsoon rains raised hopes of better crop yields, which might improve the buying power of people in rural areas. The consumer durables sector's index rose by 1,77 per cent to 4,806.94, backed by stocks of Titan Industries, Blue Star and Whirlpool.

Investors were buying some fundamentally strong company stocks ahead of better first quarterly earnings, in the wake of a statement by Standard and Poor's that the nation’s sovereign debt risk has been moderated by domestic demand for bonds.

Companies specialising in software exports rose on expectations of good volume growth in its June quarter results, to be announced later this month.

A rebound in the global economy boosted revenue from the software business, coming from the US and Europe.