Stock indices regained and rupee recovered from 13-month low on Thursday following the announcement by the U.S. Federal Reserve that it would take a “patient” approach in hiking the interest rates.
Further a stabilising Russian rouble also supported the recovery in the financial markets, which feared a financial contagion in the emerging market economies, after it hit a record low on last Tuesday.
The Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) gained by 416.44 points or 1.56 per cent to close at 27126.57.
On the National Stock Exchange, the Nifty closed at 8159.30 with a gain of 129.50 or 1.61 per cent.
Meanwhile the rupee also recovered against the dollar as the Reserve Bank of India (RBI) managed to ward-off volatility in the foreign exchange market.
The rupee closed at 63.11 a dollar compared to its previous close of 63.61 on Wednesday.
“Rupee will slowly settle down at 62.50,” said K. N. Dey, Senior Advisor, Mecklai Financial Services.
“There could be a few volatility as we enter the last phase of the calendar year,” said Mr. Dey.
