Share indices ended higher on Thursday after a volatile session.
The Sensex gained 55.52 points or 0.17 per cent to end at 32,241.93 while the NSE Nifty ended 7.30 points or 0.07 per cent higher at 10,086.60.
Inflation based on the wholesale price index hit a fourth month high in August. Wholesale price index-based inflation rose sharply to 3.24 per cent in August from 1.88 per cent in July.
The 30-share gauge had gained 524.44 points in the previous five sessions. The Sensex opened at 32,289.26 and traded between 32,328.61 and 32,186.84.
Sectoral indices led by healthcare and power rose by up to 2.22 per cent. Metal, oil and gas and realty indices were trading in the red.
The broader Nifty opened at 10,107.40 and traded between 10,126.50 and 10,071.60 in intra-day trade.
Wholesale price inflation rose to 3.24 per cent from a year ago, its fastest pace in four months, driven by higher prices of food and fuel products, data showed. The rise compares with a 3.0 per cent increase forecast by economists in a Reuters poll and a provisional 1.88 per cent rise in July. Wholesale food prices in August rose 4.41 per cent on year, compared with a 2.12 per cent rise a month earlier, government data showed on Thursday.
The final print of June WPI inflation remained unchanged from provisional estimate of 0.90 per cent.
Data released earlier this week showed retail inflation rose to a five-month high of 3.36 per cent in August due to costlier vegetables and fruits.
Also industrial production grew by just 1.2 per cent in July from 4.5 per cent a year ago, bearing the brunt of a dismal show of the manufacturing sector.
Last month, the Reserve Bank cut policy repo rate by 0.25 per cent to 6 per cent citing reduction in inflation risk. The rate cut was the first in 10 months and brought policy rates to near 7-year low.
The RBI said it will endeavour to keep retail inflation close to 4 per cent but in the near term, there might be some uptick on account of pay commission payouts and price adjustments post GST rollout from July 1.
Top Sensex gainers: Axis Bank (4.2%), Sun Pharma (4.24%), Tata Motors (+3.6%), Adani Ports (+3.4%), Dr Reddy's (1.8%) and Cipla (1.89%).
Top Sensex losers: Wipro (-4.1%), Kotak Bank (-1.17%), ONGC (-1.12%), M&M (-1.06%) and Bharti Airtel (-0.70%).
Meanwhile, DIIs bought shares worth a net Rs 725.90 crore yesterday, as per provisional data.
Shares of Bharat Heavy Electricals Ltd rose as much as 10.2 per cent after Japanese Prime Minister Shinzo Abe said it would make rolling stock for the Mumbai-Ahmedabad bullet train. The stock ended 3.66 per cent higher at Rs 137.40 on the BSE.
State oil marketing companies pared gains after the government said it had not asked fuel retailers to absorb future rate increases.
Reliance Communications Ltd slipped as much as 2.3 per cent after the India unit of Swedish telecom equipment maker Ericsson filed an insolvency case against it and two units.
Global markets
European shares inched lower in opening deals on Thursday, weighed down by weaker mining stocks, while Munich RE shrugged off a profit warning. The pan-European STOXX 600 index was down 0.1 percent, with the basic resources sector taking most points off the index as a decline in industrial metals and disappointing data from China hit shares in heavyweight miners Rio Tinto , Glencore and BHP Billiton.
Munich RE was up 0.1 percent. The German reinsurance company said it could miss its profit target this year due to losses from hurricanes Harvey and Irma.
Among outstanding gainers was Next up 8 per cent, after the British clothing retailer nudged its full-year sales and profit guidance higher.
UK's FTSE fell 0.1 per cent ahead of the Bank of England policy meeting later in the day.