Inflation at historic low; Sensex jumps over 500 points, regains 28,000-mark

Sensexhigh

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 most important levels. (File photo)Brand-new DELHI: The benchmark BSE Sensex on Friday jumped 517.78 points to close at 28,067.31 on across-the-board gains after the WPI inflation fell for July, raising hopes of a rate cut by the RBI amid a pause in rupee’s fall.

Nifty also climbed 162.70 points to end at 8,518.55.

The wholesale price index-based inflation plunged to (-)4.05 per cent in July, from (-)2.40 per cent in June, the government data showed. 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.

READ ALSO: Inflation falls to historic low of (-)4.05%

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 most important levels.

Besides, falling global crude oil prices, which slid to its lowest level in over six years, lifted sentiment, they said.

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

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.