Mumbai, Oct. 15 -- The domestic equity benchmarks rebounded sharply today, ending a two-day losing streak amid improved global sentiment and easing domestic inflation. The Sensex and Nifty rose in tandem with other Asian markets, with the Nifty closing above the 25,300 level. The rally was driven by strong buying in realty, PSU bank, and metal stocks.

Easing inflation in India boosted hopes of a potential RBI rate cut in December. An improvement in U.S.-China trade relations, a firmer rupee, and a steady start to the earnings season lifted investor confidence. Additionally, rating agencies reaffirming India's positive outlook helped counter persistent concerns over global growth.

The S&P BSE Sensex advanced 575.45 points or 0.70% to 82,...