Lower inflation no boost mkts; Sensex ends above 10K

Better than expected decline in inflation numbers and expectations of further rate cuts from the Reserve Bank played a key role in today's trade. Huge buying in rate sensitive, infrastructure, technology, and oil boosted the benchmark indices higher. The Sensex successfully closed above the 10,000 mark after 24 sessions and similer was the case with the Nifty, which settled above 3050 level. Inflation for the week ended December 6 came in at 6.84% as against 8% on week-on-week basis. This was better-than-expected, as CNBC-TV18 poll saw inflation at 7.46%. Wholesale price Index (WPI) for all commodities fell 1.1% (WoW) to 231.1 and WPI for fuel and power index down 3.7% (WoW). Such an unexpected fall indicates that there may be rate cut in near term.