Mumbai: The Bombay Stock Exchange benchmark Sensex gained over 127 points in opening trade on Wednesday on the back of bargain buying by funds and retail investors, ignoring a weak trend overseas.

The 30-share index, which lost nearly 400 points in the previous three sessions, rose by 127.35 points, or 0.76 percent, to 16,858.92 in the first few minutes of trade on Wednesday.

In a similar fashion, the wide-based National Stock Exchange Nifty index moved up by 37.30 points, or 0.74 percent, to 5,073.10 in the first few minutes of trade.

Banking, metal, oil and gas and PSUs stocks led the recovery.

Brokers attributed the recovery to fresh buying by funds and retail investors at prevailing levels.

In addition, covering up of short positions by speculators also helped stocks trade in the positive zone.

In the Asian region, Japan's Nikkei index was trading 0.65 percent lower, while Hong Kong's Hang Seng Index rose by 0.63 percent in early trade on Wednesday. The US Dow Jones Industrial Average ended 0.67 percent down in Tuesday’s trade amid escalating concerns over the euro zone debt crisis.