The Hindu Business Line : Dip in inflation drives Sensex up 516 points

Mumbai, Aug. 29 The benchmark indices moved up by 3.5 per cent on Friday aided by lower inflation numbers and a positive sentiment in the global markets.

The Sensex made a single-day gain of more than 500 points after a gap of more than a month.

The benchmark index finally settled at 14,564 up 516 points over the previous close. The Nifty closed at 4,360 up 146 points.

Easing of inflation helped the interest rate-sensitive sectors such as banking, realty, auto and capital goods post gains.

Gains in the overnight US market, and also in the Asian markets that open before the domestic markets, led to a positive opening. This gain was sustained thereafter, brokers said.

Banking stocks were among the biggest gainers: BSE Bankex index gained 6.27 per cent. Bank Nifty too, gained 6.6 per cent. The other major gainer was BSE Realty index, which rose 5.10 per cent.

The IT sector stocks too rose, helped by a drop of the rupee against the US dollar. Other sectoral indices also registered substantial gains.

The gains were, however, higher in the large-cap stocks. The BSE 500 index gained 3.25 per cent; the BSE Midcap 2.38 per cent; while the BSE Smallcap gained only 1.61 per cent.

Despite the huge gains in the benchmark index, the turnover in the cash market was modest, at Rs 10,626.94 crore on the NSE and Rs 5430.84 crore on the BSE.

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Dip in inflation drives Sensex up 516 points