Indian shares rose 0.57 percent on Thursday in choppy trade as the countrys inflation rate fell to near-zero, raising hopes of more central bank rate cuts to bolster the flagging economy. The benchmark 30-share Sensex index rose 61.52 points to 10,803.86, its sixth straight day of gains. The stock markets will be closed for the Good Friday holiday.
The Sensex rose to a near six-month-high as rate-sensitive property, banking and metal sectors rose. Indias inflation rate slipped closer to zero, official data showed Thursday, giving the central bank more room to cut interest rates. Annual inflation eased to 0.26 percent for the week ended March 28 from 0.31 percent for the previous week, according to the Wholesale Price Index, Indias most watched cost-of-living barometer.
"Lower inflation raised hopes of further monetary easing from the (Reserve Bank of India) RBI. Firm European markets boosted sentiment in late afternoon trade," said Manoj Kakaiya, dealer with brokerage ULJK Securities. Investors hope that Indias central bank could lower rates ahead of its scheduled monetary policy review on April 21. Gainers led losers 1,783 to 789 on volume of 59.15 billion rupees (1.18 billion dollars).
Indias largest vehicle maker Tata Motors rose 2.85 rupees or 1.28 percent to 225.15, as the Tata Nano, dubbed the worlds cheapest car and whose base model costs 2,000 dollars, went on sale. Indias largest bank ICICI Bank rose 21.15 rupees or 5.61 percent to 397.7 while Indias top property firm DLF rose 10.8 rupees or 4.83 percent to 222.15 rupees.
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