Indian rupee, stocks surge on US stimulus move

Mumbai, Sep 19 (IANS) The Indian stock markets' key indices surged by more than three percent and the rupee rallied to its highest level in a month after the US Federal Reserve decided to continue with its $85 billion monthly bond-buying programme.

The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE) zoomed 3.37 percent or 673.64 points to 20,641.95 points. 

The US Federal Reserve Wednesday surprised the markets by deciding to refrain from reducing the pace of its bond-buying programme. The speculation of reduction had led to a huge sell-off in Indian as well as other emerging markets. 

The Indian rupee that had tanked to a record low of 68.85 against a dollar Aug 28, soared to 61.80 — the highest level in over a month. The rupee also strengthened by nearly three percent. 

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) soared 3.66 percent or 215.70 points to 6,115.15 points.