Sensex back in form, zooms 518 points, Nifty above 8,500

Riding firmly on renewed hopes of a policy rate cut, the BSE Sensex vaulted nearly 518 points -- its biggest single-day rise in nearly seven months -- to reclaim the 28,000-mark after WPI inflation for July cooled.
Rate-sensitive realty, banking and auto stocks drove the rally as rupee's slide saw a pause.
Investors cheered changes made in the MSCI's quarterly index review, which could bring inflows into Indian markets.
The broad-based NSE Nifty too re-crossed the 8,500-level to hit a high of 8,530.10 before settling at 8,518.55, up 162.70 points, or 1.95 per cent, its biggest single-day percentage gain since January 15.

Wholesale price index-based inflation declined to (-)4.05 per cent in July, from (-)2.40 per cent in June.
The latest set of numbers followed data earlier this week which showed retail inflation fell in July, which rekindled hopes of a possible rate reduction from RBI.

The 30-share gauge scaled the day's high of 28,100.64, before ending at 28,067.31, a gain of 517.78, or 1.88 per cent, its biggest single-session rise since January 20.
Brokers said higher chances of policy loosening have led to buying by participants, helping key indices regain their crucial levels.
Besides, falling global crude price, at its lowest level in over six years, improved sentiment, they said.

ICICI Bank was one of the top gainers (up 3.58 per cent) while SBI, HDFC, HDFC Bank and Axis Bank too advanced.
Vedanta gained the most, followed by RIL, Bajaj Auto, and Bharti Airtel.
Among the 30 Sensex components, 28 advanced as 2 ended in the red.
Sectorwise, the BSE realty index rose the most followed by banking, auto and healthcare.
Buying activity by retail investors also spread to mid-cap and small-cap stocks, which ended higher with gains up to 2.36 per cent.
Foreign portfolio investors (FPIs) net sold shares worth Rs 625.90 crore yesterday, provisional exchange data showed.
Other Asian markets saw a mixed trend on closing while European stocks were down in early trade.