ET
 
Mumbai, Dec 4: Benchmarks were at the day’s highest levels as inflation eased and in anticipation of a fiscal stimulus to boost economy. 

Inflation rate for the week ended Nov 22 fell further to 8.40 per cent from 8.84 per cent a week earlier and against higher forecasts of 8.91 per cent.

Close to 3pm, Bombay Stock Exchange’s Sensex was at 9,192.76, up 445.33 points or 5.09 per cent.

The National Stock Exchange’s Nifty was at 2775.85, up about 119 points.

A high-powered committee headed by Prime Minister Manmohan Singh is planning a stimulus package for the economy hit by the global financial crisis and demand slowdown. An estimated Rs 15,000 crore is expected for the infrastructure sector from the budget while Rs 2,000 crore will be earmarked for exporters of labour-intensive products.

The commercial vehicle industry could receive respite in the form of reduced excise duty. An announcement on cuts in repo rate and reverse repo rate is also expected from RBI on Saturday. External commercial borrowing (ECB) norms may be relaxed to allow industry to source funds outside the country.