Mumbai: The broader Nifty gains 0.85 per cent, heading towards snapping a five-day selling streak as rate-sensitive stocks surge after June consumer inflation slowed to a low of 7.31 per cent ahead of the Reserve Bank of India's policy review on August 5.
The inflation data is seen countering the negative vibes due to the deficient monsoon so far, traders add.
India's inflation eased in June after the new government curbed farm exports, but a growing risk that drought will damage summer crops could encourage the central bank to keep interest rates on hold at a policy review meeting early next month.
ICICI Bank shares gain 1.7 per cent, while Tata Motors is up 1.6 per cent. Gains also track higher Asian shares after Citigroup's earnings and a fresh round of merger and acquisition activity in the US healthcare industry lifted global share prices.
