India’s stock markets staged a spectacular relief rally in two months, with the 30-share BSE Sensex surging by 516 points, or 3%, to close at 17,805 on Friday.
The reason: A string of positive news like the European leaders’ plans to solve the region’s debt problems.
Also, the rupee, badly hit by a sputtering global economy, jumped to its highest levels in 17 months by 74 paise, or 1.49%. The turnaround came after last week’s 30-month low, breaching the psychological barrier of Rs50 to a dollar, on the hopes of dollar-backed foreign capital inflow.
In the stock markets, the RBI’s hint on Tuesday that it might not raise interest rates any further calmed anxious investors battered by uncertainties clouding the global and domestic economies.
The National Stock Exchange’s index Nifty jumped 158.90 points, or 3.05%, to close at a fresh three-month high of 5,360.70.