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