A historic low WPI data raised the prospects of an interest rate cut by the Reserve Bank of India (RBI) pushing benchmark indices higher in trade today.
Banking stocks, particularly PSU banking stocks gained following the release of the WPI data.
The Sensex ended the day higher 246 points, while the Nifty gained 82 points in trade ahead of the CPI inflation data, which could be the key driver for the RBI to cut interest rates.
Leading the gainers were stocks from the banking sector like Axis Bank, Yes Bank and Bank of India. Other rate sensitive stocks like autos and real estate also saw buying interest on hopes of a rate cut. Oberoi Realty, Prestige Real Estate and Sobha Developers were the gainers from the real estate space.
Mid cap stocks saw buying interest with CESC, Crisil and Voltas among the top losers in trade. Top Nifty gainers in trade today were Tata Steel, NTPC, Wipro and Hindalco.
Buying was also seen in select auto stocks.
Meanwhile, markets across Asia also saw buying interest with benchmark indices in Hong Kong, Malaysia and Indonesia all ending the day higher.