New Delhi - Indian share indices rose by about 5 per cent Thursday on expectations that the country's federal bank would cut interest rates as the inflation rate lowered further.

Reports that the government was considering a stimulus package for the automotive, exports and realty sectors, also boosted sentiments, analysts said.

The 30-share Sensex of the Bombay Stock Exchange closed at 9229.75 points, about 5.5 per cent above its previous close.

The broader 50-share Nifty of the national Stock Exchange ended at 2788, about 4.95 per cent higher than Wednesday's close.

Government data released Thursday showed the country's inflation rate declined to 8.4 per cent during the week ending November 22 compared to the preceding week's
8.84 per cent.

Realty stocks, which have been heavily battered in recent weeks, witnessed a huge rally, followed by metals and capital goods. (dpa)