Sensex ends higher by 500 points on rate cut hopes

Markets have closed the session on a firm note aided by rate-sensitive shares on rate cut hopes post July WPI data.

Provisionally, the Sensex closed at 28,051, up by 502 points and the Nifty surged 164 points at 8,520.

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Updated at 14:30

The benchmark indices are going strong this afternoon on expectations of a rate cut, slim possibility of a GST roll-out by the stipulated deadline and return of stability in the Chinese currency markets. The rally is being led by index heavyweights such as HDFC, RIL and ICICI Bank.

At 2.20pm, the Sensex was at 28,032, stronger by 482 points or 1.7% and the Nifty was at 8,509, up 152 points.

The broader markets are also in top gear, with the BSE midcap index surging by 2% and the smallcap index gaining 1.6%. The market breadth is strong; out of 2782 stocks traded on the BSE, there are 1728 advancing stocks as against 957 declines.

The wholesale prices fell at a faster-than-expected annual rate of 4.05% in July, its ninth consecutive decline and lowest in atleast a decade, mainly driven by weak food and fuel prices.

On the GST front, the government is reportedly mulling a two-day Parliament session to get GST Bill passed in its determination to stick to the implementation timeline of April 2016 after a belligerent Congress-led opposition stalled passage of the indirect tax legislation in the just-concluded session.

Meanwhile China's central bank raised the value of yuan against the US dollar by 0.05%, halting a 3-day decline in the currency.  

RUPEE

The rupee has bounced back from the 65.34 mark, its weakest level since September 2013, after China strengthened yuan against the dollar. The rupee is currently trading at 65, up 3 paise.  

STOCK TRENDS

All the BSE sectoral indices are in the green, with the rate-sensitive banking and auto indices racing ahead by more than 2% each on rate cut expectations. Vedanta, HDFC, RIL and Hindalco are the top individule gainers on the BSE.

In the banking space, PNB has soared by more than 7%, while ICICI Bank, HDFC, HDFC Bank, SBI and Kotak Mahindra Bank have added 2-3% each.

The auto space is seeing the likes of Bajaj Auto, M&M, Hero Motocorp and Maruti Suzuki gaining 2-3% each.

The metal stocks are also in the limelight, with Hindalco and Vedanta gaining around 4% each.

Infosys, Dr Reddy’s Laboratories, Glenmark Pharmaceuticals, Adani Ports and Special Economic Zone, Abbott India and Torrent Pharmaceuticals are among 22 stocks that have hit their lifetime highs in intra-day trades today.

Telecom majors, including Bharti Airtel, Idea Cellular and Rcom are trading higher between 2-3% after the government permitted spectrum sharing between a move that could resolve the issue of call drops and improve efficiency in their respective telecom circles.

Glenmark Pharmaceuticals has surged by 12% to Rs 1,184, also its record high on the National Stock Exchange (NSE) on inclusion in the MSCI Emerging Markets Index from close of August 31, 2015. Adani Port and Special Economic Zone has gained 8.7%, adding to Thursday’s 3.9% rise as the stock is set to replace NMDC in Nifty from 28 September.

On the other hand, Dr Reddy's has shed aroundc 1% to be the sole loser among the Sensex-30 scrips.