Nifty regains 8,500-level, jumps 163 pts

Indian markets rebounded in a resounding fashion after days of intense selling with the flagship benchmark Nifty surging by 163 points - its second biggest jump in the current year and relaimed the significant 8,500 psychological mark today.
Renewed hopes of a policy rate cut as well as mood calmer on easing global volatility predominatly scripted the rally.
The overall sentiment turned highly buoyant after the wholesale inflation for July month plunging to a historic low, rekindling hopes of a possible rate reduction from RBI.
Rate-sensitive realty, banking and auto and recently beaten-down metals stocks were the keen driver on the rally even as the home currency paused its fall.

The rupee has been falling sharply on strengthening dollar value as well as tracking the devaluation of yuan.
After a strong start to trade, the key indices continued its rallying momentum throughout with consolidating gains till the end session.

Other bourses in the region were less upbeat.
With inflation numbers ruling its satisfactory limits, the central bank would probably accelerate rate cut before its scheduled policy meet, despite heightened concern about deficit monsoon, a trader commented.
Elsewhere in the region, most equities ended lower tracking renewed decline in oil prices amid investors caution though volatile markets were soothed after China's central bank said there was no basis for continued currency depreciation.

The broader 50-share Nifty shot-up by 162.70 points, or 1.95 per cent to end at 8,518.55 - its biggest single-day percentage gain since January 15.
Among CNX sectoral indices, Realty surged by 8.43 per cent followed by PSU Bank 4.58 per cent, Bank Nifty 3.02 per cent, Media 3.32 per cent, Infra 2.55 per cent, Auto 2.38 per cent, Energy 1.88 per cent, Metal 1.43 per cent, Healthcare 1.73 per cent and Technology 0.77 per cent.
Major index gainers included HDFC, ICICI Bank, HDFC Bank, Reliance, TCS, L&T, SBI, Kotak Bank, ZEE, M&M, Sun Pharma, Indusind Bank, Idea, Yes Bank, Tata Motors, Bharti Artel, PNB, Maruti, Bajaj Auto, ITC, Lupin and Asian Paints.

Notable losers were BPCL, Dr Reddys and Infosys.
Turnover in the cash segment dropped to Rs 17,997.09 crore as against Rs 18,193.88 crore yesterday.
A total of 9,483.85 lakh shares changed hands in 86,19,644 trades and the total market capitalisation of NSE stood at Rs 101,34,430 crore.