 "Markets surge on rate cut hopes")
Markets edged higher in noon trades led by rate sensitive shares after the announcement of low-than-expected May WPI at 4.7% rekindled hopes of rate cut by the central bank in the upcoming policy on June 17.
The headline inflation slowed for a fourth straight month in May to 4.7% from a year earlier, but a slump in the rupee is likely to prevent the RBI from lowering policy rates on Monday despite the economy slowing to a decade-low level.
May's reading was the lowest in more than three years. The wholesale price index, India's main inflation measure, rose an annual 4.89% in April. The reading for March was revised to 5.65% from 5.96%, data released by the Ministry of Commerce and Industry on Friday showed.
In international markets, shares partly recouped recent losses on Friday and the dollar steadied, but both headed towards a fourth consecutive week of declines driven by uncertainty over central bank stimulus programs.
Talk that the U.S. Federal Reserve, which holds its monthly meeting next week, could scale back its bond buying later in the year has led to a sharp selloff in global markets this week.
With better-than-expected U.S. retail sales data overnight appearing to have brought some relief to markets, top European stocks climbed 0.3 percent, tracking a rebound in Japanese and Asian shares in general.
All the sectoral indices were in the green with Consumer Durables, Auto, Realty, Metal, Oil & Gas and Capital Goods indices edging higher by 2-3.5%.
The top gainers among the Sensex-30 were Hindalco, Tata Motors, Maruti Suzuki, Tata Power, Tata Steel, Mahindra & Mahindra and Jindal Steel gaining 3-6%.
Reliance Industries, L&T, ICICI Bank, HDFC, Sterlite, Bajaj Auto and Gail India which added 2-2.6% were the other notable gainers.
Meanwhile, Wipro, Cipla and Hindustan Unilever, down 0.3-0.9% were the only Sensex-30 stock in red.
The market breadth was strong on the BSE. 1,357 stocks advanced while 865 stocks declined.
The headline inflation slowed for a fourth straight month in May to 4.7% from a year earlier, but a slump in the rupee is likely to prevent the RBI from lowering policy rates on Monday despite the economy slowing to a decade-low level.
May's reading was the lowest in more than three years. The wholesale price index, India's main inflation measure, rose an annual 4.89% in April. The reading for March was revised to 5.65% from 5.96%, data released by the Ministry of Commerce and Industry on Friday showed.
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By 1420hrs, the Sensex was up 334 points at 19,161 and the Nifty advanced 105 points to 5,804.
In international markets, shares partly recouped recent losses on Friday and the dollar steadied, but both headed towards a fourth consecutive week of declines driven by uncertainty over central bank stimulus programs.
Talk that the U.S. Federal Reserve, which holds its monthly meeting next week, could scale back its bond buying later in the year has led to a sharp selloff in global markets this week.
With better-than-expected U.S. retail sales data overnight appearing to have brought some relief to markets, top European stocks climbed 0.3 percent, tracking a rebound in Japanese and Asian shares in general.
All the sectoral indices were in the green with Consumer Durables, Auto, Realty, Metal, Oil & Gas and Capital Goods indices edging higher by 2-3.5%.
The top gainers among the Sensex-30 were Hindalco, Tata Motors, Maruti Suzuki, Tata Power, Tata Steel, Mahindra & Mahindra and Jindal Steel gaining 3-6%.
Reliance Industries, L&T, ICICI Bank, HDFC, Sterlite, Bajaj Auto and Gail India which added 2-2.6% were the other notable gainers.
Meanwhile, Wipro, Cipla and Hindustan Unilever, down 0.3-0.9% were the only Sensex-30 stock in red.
The market breadth was strong on the BSE. 1,357 stocks advanced while 865 stocks declined.