The Bombay Stock Exchange benchmark Sensex was up by over 121 points at mid-session as reports of a decline in food inflation erased early losses.

The 30-share Sensex, which lost nearly 31 points in opening trade, bounced back and surged by 121.29 points to 18,422.19 at 1230 hrs, with banking, capital goods and metal stocks recording fresh gains.

The early weak trend was reversed on reports that food inflation fell for the second time in a row to 11.05 per cent for the week ended on 5th February  from 13.07 per cent in the previous week.

In a similar fashion, the broad-based National Stock Exchange index Nifty rose by 41.50 points to 5,523.20 at 1230 hours, after a lower opening.