Sensex retakes 28,000, Nifty above 8,500 as WPI falls.

 The benchmark BSE Sensex reclaimed the 28,000-mark and the NSE Nifty was trading above 8,500 level at noon on Friday on across-the-board gains after WPI inflation fell for July, raising hopes of a rate cut by the RBI amid a pause in rupee's fall.

Wholesale price index-based inflation plunged to (-)4.05 percent in July, from (-)2.40 percent in June.

The latest set of numbers followed data earlier this week which showed retail inflation eased in July, which raised hopes of a possible rate cut by RBI.

Equity brokers said better-than-expected positive macro data fuelling hopes of a policy rate reduction triggered buying by participants, helping key indices regain their crucial levels.

Besides, falling global crude oil prices, which slid to its lowest level in over six years, lifted sentiment, they said.

The 30-share index, which rose over 162 points in early trade, continued its advance, soaring 500.52 points, or 1.82 percent, to 28,050.05 at 1326 hours.

The gauge had gained 37.27 points in the previous session.

All sectoral indices, led by realty, banking, auto and healthcare, were trading in the positive zone with gains up to 5.57 percent.

The NSE Nifty retook the crucial 8,500-mark by surging 166.15 points, or 1.99 percent, to 8522 at 1326 hours.

Vedanta led the pack of gainers, followed by RIL, HDFC, Bajaj Auto and ICICI Bank.

Among other Asian markets, the Shanghai Composite index rose 0.27 percent while Japan's Nikkei fell 0.37 percent and Hong Kong's Hang Seng lost 0.14 percent.

Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 625.90 crore yesterday, provisional exchange data showed.

Oriental Bank of Commerce cuts lending rate by 0.1%

State-owned Oriental Bank of Commerce (OBC) slashed minimum lending rate -- the base rate -- by 0.1 percent to 9.90 percent, a move which will lower EMIs for borrowers of the bank.

The bank has reduced base rate to 9.90 percent from 10 percent with effect from August 17, OBC said in a statement.

With the reduction in base rate, all loans linked to the base rate will become cheaper by 0.1 percent.

The reduction in base rate by the bank comes even after RBI kept benchmark rate unchanged in the monetary policy review on August 4.

RBI kept repo rate -- the short-term lending rate -- cash reserve ratio (CRR) and statutory liquidity ratio (SLR) unchanged at 7.25 percent, 4 percent and 21.5 percent, respectively.

Earlier this month, Punjab National Bank cut interest rate on fixed deposits on select maturities by up to 0.50 percent.

Interest rate on domestic term deposits has been reduced between 0.10 percent and 0.50 percent on select maturities with effect from August 10, PNB said in a statement.