Equity benchmark indices Sensex and Nifty climbed in early trade on Wednesday as steady US inflation data propelled a sharp rally in global markets.

Besides, retail inflation slowing to an 8-year low of 1.55 per cent in July also led to the positive trend in domestic equities.

The 30-share BSE Sensex climbed 327.79 points to 80,563.38 in early trade. The 50-share NSE Nifty edged up by 112.15 points to 24,599.55.

From the Sensex firms, Bharat Electronics, Tata Motors, Power Grid, Tata Steel, Eternal and Infosys were among the gainers.

However, Maruti, Tech Mahindra, HCL Tech and Bajaj Finserv were among the laggards.

Retail inflation slowed to an 8-year low of 1.55 per cent in July, falling below the Reserve Bank's comfort zone for the first time since January 2019, helped by subdued prices of food items, according to government data released on Tuesday.

"Nifty and Bank Nifty traded with a bullish undertone as positive cues from lower CPI readings in India and steady US inflation boosted sentiment," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

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

The US markets ended significantly higher on Tuesday.

"The Trump-Putin talks may provide a positive trigger, but there is no certainty about it," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Global oil benchmark Brent crude went up by 0.06 per cent to USD 66.16 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,398.80 crore on Tuesday, according to exchange data.

On Tuesday, the Sensex dropped 368.49 points or 0.46 per cent to settle at 80,235.59. The Nifty went lower by 97.65 points or 0.40 per cent to 24,487.40.