Mumbai, Jun 19 - The BSE benchmark Sensex recovered by over 88 points in early trade today after yesterday's steep fall on emergence of buying by funds and retail investors even as rating agency Fitch lowered India's credit rating outlook to negative. Covering-up of short positions by speculators, too, helped stocks to recover part of yesterday's losses.

The 30-share barometer, which had lost 244 points in yesterday's trade, recovered by 88.13 points, or 0.53 per cent, to 16,793.96 points with capital goods, auto and metal sector stocks leading the recovery.

The wide-based National Stock Exchange index Nifty also moved up by 16.35 points, or 0.33 per cent, to 5,080.60. Brokers said emergence of selective buying by funds and retail investors in heavy-weight stocks at existing levels helped the trading sentiment to improve.

They said, however, lowering of country's credit rating outlook to negative by global agency Fitch yesterday and disappointing RBI's mid-term monetary policy, keeping all key rates unchanged, restricted the gains.

In the Asian region, the Japan's Nikkei fell by 0.32 per cent, while Hong Kong's Hang Seng shed 0.27 per cent in early trade. The US Dow Jones Industrial Average ended 0.20 per cent lower in yesterday's trade. PTI