Pre-independence day renewed hope, the benchmark indices had a spectacular session of trade, with the Sensex reclaiming the 28,000 mark and Nifty settling above 8,500, on expectations of a rate cut by the Reserve Bank of India, a glimmer of hope on the GST front and return of stability in the Chinese currency markets.
The Sensex ended at 28,067, stronger by 517 points or 1.8% and the Nifty settled at 8,519, up 162 points.
The market breadth was over-whelmingly in favour of the bulls; out of 2,943 stocks traded on the BSE, there were 1,791 advancing stocks as against 1,055 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. The plunging inflation has resurrected hopes of a rate-cut by the central bank and 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.
The rupee 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.