Expectations of further economic reforms and healthy macro-data buoyed investor sentiment and led a barometer index of the Indian equity markets to gain 478 points during the late-afternoon trade session on Friday.
The barometer sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained 478 points or 1.73 percent as interest-sensitive stocks like banks, automobile and capital goods zoomed.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made healthy gains. It was up 151 points or 1.80 percent at 8,506.60 points.
The S&P BSE Sensex, which opened at 27,668.06 points, was trading at 28,027.23 points (at 2.30 p.m.) -- up 477.70 points or 1.73 percent from the previous day's close at 27,549.53 points.
The Sensex touched a high of 28,089.74 points and a low of 27,643.20 points in the intra-day trade so far.
Investors were seen hopeful of a rate-cut based on healthy macro-economic data that was released on Friday.
The data pertaining to the wholesale price index (WPI) showed that India's annual wholesale inflation for July fell for the ninth straight month to a historic low of (-)4.05 percent from (-)2.4 percent for the month before.
The WPI coupled with consumer price index (CPI) have pointed at a gradual reining in of prices.
The CPI released on Wednesday showed a fall in India's annual retail inflation rate to 3.78 percent in July.
Sector-wise, healthy buying was observed in banks, automobile, healthcare, capital goods and information technology (IT) stocks.
The S&P BSE bank index rocketed by 552.32 points, automobile index zoomed by 420.90 points, followed by healthcare index which jumped by 314.81 points, capital goods index gained by 256.27 points and IT index rose by 124.11 points
