Mumbai, June 16 -- The headline equity benchmarks traded with significant gains in early afternoon trade, driven by positive investor sentiment following a decline in inflation. (WPI) inflation eased to a 14-month low of 0.39% in May, down from 0.85% in April, primarily due to a sharp drop in food prices and lower fuel costs.

The Nifty traded above the 24,900 level. Metal shares rebounded after three consecutive sessions of decline.

At 12:30 IST, the barometer index, the S&P BSE Sensex added 530.27 points or 0.65% to 81,648.87. The Nifty 50 index rose 189 points or 0.79% to 24,907.95.

In the broader market, the S&P BSE Mid-Cap index rose 0.35% and the S&P BSE Small-Cap index dropped 0.35%.

The market breadth was positive. On the BSE, ...