Mumbai: The Bombay Stock Exchange benchmark Sensex rebounded by almost 305 points in opening trade on Tuesday after a three-day losing streak on the emergence of buying by funds and retail investors, tracking a firming trend on other Asian bourses.

The 30-share BSE index, which lost nearly 1,015 points in the previous three sessions, recovered by 304.92 points, or 1.89 percent, to 16,356.02 in the first five minutes of trade on Tuesday, with all the sectoral indices trading in positive terrain with gains of up to 2.56 percent.

Likewise, the wide-based National Stock Exchange Nifty Index also moved up by 91.30 points, or 1.88 percent, to 4,926.70.

Brokers said a fresh spell of buying by funds and retail investors in recently beaten-down stocks, driven by a firming trend on the other Asian bourses following overnight gains in the US on hopes that European policymakers would find a solution to stabilise debt-stricken Greece, buoyed the trading sentiment.

In addition, covering-up of short positions ahead of monthly expiry in the derivatives segment on Thursday also helped stocks to recover, they said.

In the Asian region, Hong Kong's Hang Seng Index rose by 2.44 percent and Japan's Nikkei Index by 1.80 percent in morning trade on Tuesday. The US Dow Jones Industrial Average closed 2.53 per cent higher on Monday.