India's key indices rose to record highs with the Sensex closing above 28,000 for the first time ahead of key economic data releases including consumer inflation and industrial production. Brokers expect the benchmark indices to extend gains on Thursday after consumer inflation eased to a three-year low and industrial production was stronger-than-expected.
Softening inflation will raise hopes of an interest rate cut in December though RBI has indicated that it could wait for some more time. Sensex surged 98.84 points or 0.35% to end at 28,008 points. NSE Nifty gained 20.65 points, or 0.25%, to end at 8,383 points. The index had hit the 8,400-mark for first time during the day .
On Wednesday , foreign institutional investors net bought shares worth about Rs.460 crore.
India's consumer price inflation (CPI) data for October, which came post market closing, eased to 5.52%, its slowest pace of price rises since numbers were first publish ed in January 2012. The market was expecting CPI at 5.80%.
Industrial production data (IIP) for September, which was announced post market closing, rose to 2.5%. Analysts said factory output numbers are above expectations of 0.6%.
Stocks also advanced on optimism that a 28% drop in Brent crude oil prices to below $81 a barrel since June will cut import costs for the country and further easing price pressures, as India imports 80% of its oil requirements.
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