By Krishna V Kurup
Analysts, however, said retail inflation could accelerate to 6 percent by June and may remain at 5 percent to 6 percent in the financial year that begins on April 1, leading to pre-emptive monetary tightening.
The broader NSE Nifty was up 0.36 percent at 10,458.85 as of 0541 GMT, while the benchmark BSE Sensex rose 0.34 percent to 34,034.01.
"PSU (public sector) banks have been oversold, having been battered down so badly, so some sort of bounce was due and the CPI (data) coming in at a soft level became a trigger for the rise as it could lead to some pressure on RBI to re-look the interest rates," said Deepak Jasani, head of retail research at HDFC Securities.
Meanwhile, IT stocks declined led by Tata Consultancy Services, which posted its biggest intraday pct fall since Nov. 2016 after a term sheet showed that parent Tata Sons is set to sell a stake in the company.
(Reporting by Krishna V Kurup in Bengaluru; Editing by Sunil Nair)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)