Sensex, rupee spurt as Fed decides not to roll back stimulus
19 Sep 2013
The Bombay Stock Exchange benchmark Sensex surged more than 650 points at 1:50 pm today on all-round buying while the rupee jumped 142 paise to 61.96 against the dollar in late morning trade after the US Federal Reserve surprised markets globally by sticking to its programme of economic stimulus.
The BSE Sensex gained 3.4 per cent, while the National Stock Exchange's 50-share barometer Nifty was up 193.85 points, or 3.29 per cent at 6,093.30.
The US Federal Reserve on Wednesday announced that it will continue its monthly $85 billion bond-buying programme as it waits for more evidence of growth recovery. Expectations of a tapering in the stimulus programme had led to fears of capital outflows, causing the rupee to depreciate and stocks to fall.
The rupee surged past the 62 level against the dollar and was quoted at 61.96 per dollar at 1050 hours, compared with yesterday's close of 63.38.
Foreign institutional investors bought shares worth a net Rs580.13 crore on Wednesday, according to provisional data from the stock exchanges.
Asian stocks were higher in early trade, with benchmark indices in Hong Kong, Indonesia, Japan and Singapore rising by 1.54 to 4.5 per cent.
The stock markets in mainland China, Taiwan and South Korea were closed for a holiday.
