Sensex retakes 28,000, Nifty above 8,500 as WPI falls

Sensex retakes 28,000, Nifty above 8,500 as WPI falls
 The benchmark BSE Sensex reclaimed the 28,000-mark and the NSE Nifty was trading above 8,500 level at noon today on across-the-board gains after WPI inflation fell for July, raising hopes of a rate cut by the RBI amid a pause in rupee's fall.

Wholesale price index-based inflation plunged to (-)4.05 per cent in July, from (-)2.40 per cent in June.

The latest set of numbers followed data earlier this week which showed retail inflation eased in July, which raised hopes of a possible rate cut by RBI.

Equity brokers said better-than-expected positive macro data fuelling hopes of a policy rate reduction triggered buying by participants, helping key indices regain their crucial levels. Besides, falling global crude oil prices, which slid to its lowest level in over six years, lifted sentiment, they said.

The 30-share index, which rose over 162 points in early trade, continued its advance, soaring 500.52 points, or 1.82 per cent, to 28,050.05 at 1326 hours.
The gauge had gained 37.27 points in the previous session.

All sectoral indices, led by realty, banking, auto and healthcare, were trading in the positive zone with gains up to 5.57 per cent.

The NSE Nifty retook the crucial 8,500-mark by surging 166.15 points, or 1.99 per cent, to 8522 at 1326 hours.

Vedanta led the pack of gainers, followed by RIL, HDFC, Bajaj Auto and ICICI Bank.
Among other Asian markets, the Shanghai Composite index rose 0.27 per cent while Japan's Nikkei fell 0.37 per cent and Hong Kong's Hang Seng lost 0.14 per cent.

Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 625.90 crore yesterday, provisional exchange data showed.

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