New Delhi, Aug. 13 -- Indian stocks ended higher in Wednesday's trading session (August 13), with benchmark indices gaining over half a percent after a tamer-than-expected US inflation report raised the possibility that the Federal Reserve could cut interest rates next month.

Domestic inflation continued to soften for the ninth straight month, hitting the lowest level since 2017 at 1.55%, below analysts' estimates. This also raised expectations of an interest rate cut by the central bank, lifting rate-sensitive stocks, including auto and realty counters.

The Nifty 50 finished 0.54% higher at 24,619, while the S&P BSE Sensex gained 0.38% to settle at 80,539. The broader markets outperformed, with the Nifty Midcap 100 and Nifty Smallcap 1...