Mumbai: Marking its biggest single-day rise in nearly seven months, the benchmark BSE Sensex today leapt 518 points to reclaim the 28,000-level after WPI inflation for July fell further. Wholesale price index-based inflation fell 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 that retail inflation fell in July, which rekindled hopes of a possible rate reduction from RBI. “Indices staged a stellar show on the back of buying interest till the last leg of trade. July WPI contracted for ninth straight month and cooling of CPI inflation fuelled the rate cut expectations that RBI governor may cut rates before its policy in September,” said Gaurav Jain, Director, Hem Securities.
A pause in rupee’s slide contributed to the upside. Sentiment went up a few notches after the MSCI’s quarterly index rejig, which is expected to lead to more inflows into Indian markets. The rally gathered steam after it became clear that the government is determined to stick to its April 2016 GST rollout deadline despite protests from the Opposition.
The 30-share barometer hit the day’s high of 28,100.64, before settling at 28,067.31, up 517.78, or 1.88 per cent, its biggest single-day rise since January 20. The NSE Nifty retook 8,500 to hit a high of 8,530.10 and ended the day at 8,518.55, higher by 162.70 points, or 1.95 per cent, its biggest single-day percentage gain since January 15.
Of the 30 Sensex pack, 28 turned green as 2 ended in the red. Sector-wise, the BSE realty index jumped the most followed by banking, auto and healthcare. Asian markets ended mixed today as European stocks were ruling higher as Parliamentary voting began for Greece’s third bailout from its foreign creditors.