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

Mumbai: The benchmark BSE Sensex reclaimed the 28,000-mark and the NSE Nifty was trading above 8,500 level 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.