Macro numbers do the job for markets, Sensex up 246 pts

Markets got off to a good start on Monday when the Sensex surged over 246 points to close at a 2-week high of 25,856.70 on back of improved prospects of a policy rate cut following a further fall in WPI inflation for August and better-than-expected IIP data for July.
The NSE Nifty too played ball, which took back the 7,800-level.
Inflation measured by the wholesale price index plunged to a record low of (-)4.95 per cent in August, from (-)4.05 per cent in July.
Industrial output numbers, which came out after market hours on Friday, showed that IIP expanded at a higher 4.2 per cent in July this year from the same month last year as manufacturing and offtake of capital goods improved.

Finance Minister Arun Jaitley today promised investors the "fairest and predictable taxation regime" as he invited them to invest in various sectors, which in turn calmed the nerves somewhat.
The 30-share barometer ended the day higher by 246.49 points, or 0.96 per cent, at 25,856.70 -- its highest closing since August 31.

The gauge had lost 109.37 points in the past two straight sessions.
Reclaiming the 7,800-level, the broader NSE Nifty hit a high of 7,879.95 before settling at 7,872.25, up 82.95 points, or 1.06 per cent.
The closing was a two-week high for both the key indices.
Brokers said investors shrugged off another set of soft Chinese data as they looked forward to the US Fed action on the rates front when it meets on September 16-17.

Softening global crude prices and a recovery in the rupee, at 66.33, against the dollar contributed to the surge too.
"Markets started the first trading day of the week on a firm note driven by the increasing hopes of a rate cut by RBI in its monetary policy review due on September 29. August WPI inflation continued to be in the negative territory," said Gaurav Jain, Director, Hem Securities.
NTPC was one of the top gainers (up 5.06 per cent) while Axis Bank, Wipro, GAIL and SBI, among others, too advanced.
The BSE metal index was the showstopper sectorally as it rose the most by surging 2.70 per cent, followed by power, banking, PSU and realty.

Buying by retail investors rubbed off on mid-cap and small-cap stocks, which gained up to 1.27 per cent.
Foreign portfolio investors (FPIs) net sold Rs 754.27 crore worth of shares last Friday, exchange data showed.
On the global front, major Asian stocks ended mixed today as Shanghai led the losses after the disappointing Chinese data over the weekend.
European stocks ruled higher though.