The BSE benchmark Sensex on Tuesday closed 31-points up on funds buying mainly in banking and healthcare stocks as inflation eased to over three years low.

After a better start, the Sensex fell to the day’s low of 19,652.69 before ending with a gain of 30.62-points, or 0.16 per cent, to 19,722.29.

Brokers said the buying activity was mostly confined to banking and healthcare sectors as inflation eased to over three years low.

Softening food prices pulled down inflation to over three year low of 4.89 per cent in April, giving RBI space to further ease interest rates. The market also improved on speculators covering their pending short positions created in the previous session’s steepest fall in one year, traders added.

With the general firming trend, the broad-based National Stock Exchange index Nifty rose by 14.95-points, or 0.25 per cent, to 5,995.40.

The healthcare sector index gained the most by 0.67 per cent to 8,880.47 followed by tech index by 0.64 per cent to 3,604.51.

Power index rose by 0.40 per cent to 1,754.88 and oil and gas index by 0.33 per cent to 8,716.85.