As WPI inflation declines, the Sensex soars 318 points and the Nifty finishes close to 18,400


The benchmark BSE Sensex surged 318 points to close at 61,824 on Tuesday, while the broader NSE Nifty ended at 18,400, as WPI inflation eased and realty stocks soared. The BSE Sensex opened at 61,473 and advanced further to touch a high of 61,864 in the intra-day trade. Similarly, the NSE Nifty rose to 18,427.

The gains in the Sensex and Nifty were led by realty stocks, which jumped up to 8 percent, after the government announced that it will allow 100 percent foreign direct investment (FDI) in the real estate sector. Other sectors that contributed to the gains were auto, IT, power, oil & gas, banking, capital goods and healthcare.

The WPI inflation eased to 1.22 percent in August, compared to 1.55 percent in July. The WPI inflation had hit a six-month high of 1.88 percent in June. The rupee strengthened by 16 paise to 73.75 against the US dollar in the opening trade.