A day after Federal Reserve Chairman Ben Bernanke announced the rate cut, FIIs bought shares worth over Rs 2,400 crore (Rs 24 billion), lifting the index up by 650 points, one of its biggest intra-day gains.
The Sensex closed with gains of 202.33 points or 1.87% at 11,014.97 above the 11000 level.
Investor wealth on Thursday soared by Rs 1 lakh crore, triggered by heavy buying in the stock market, with the BSE benchmark Sensex surging about 382 points to close at near six-week high levels.
It isn't Rajan ignoring money as much as it is Bernanke ignoring capital and exchange rates.
Rupee, he said, is not in shambles and "we should not be overtly pessimistic".
Some investors had speculated that the US central bank might put its plans on hold given the jitters overseas.
Terming the sudden outflow of $5 billion as "unfortunate", Finance Minister P Chidambaram on Tuesday said there should, however, be no room for pessimism as fundamentals of the economy are intact and government is moving ahead on the reforms path.
Breakfast meeting between Timothy Geithner, US treasury secretary, leading industralists due Wednesday.
The list of 22 leaders was compiled in association with Harvard Kennedy School. It also includes Federal Reserve Board Chirman Ben Bernanke, Newark city Mayor Cory Booker, Cisco Systems CEO and Chairman John Chambers and playwright-activist Eve Ensler.
The biggest challenge for central banks of the world is to unwind liquidity without hurting recovery
Whatever it be, an official statement from you clearly defining the extent of the problem, would be in order. At least that in my opinion, sir, would put an end to the uncertainty that is plaguing the financial markets all across the globe. And, sir, as you know, markets abhor uncertainty, for lack of trust is highly corrosive.
Overconfident, overpaid and everywhere - the 2007 vintage of MBAs.
Government is also will also enter into an agreement with Japan for a $50 billion swap.
The rupee's plunging to record level and a sharp fall in the equity market are knee-jerk investor reactions to the US Federal Reserve's saying the it will slow down bond-buying programme in view of improving American economy.
Investor wealth slumped by Rs 1.55 lakh crore on Thursday today, dragged down by massive selling in the stock markets where nearly seven out of ten shares closed lower.
In the backdrop of the US economy slowly improving, the US Federal Reserve chairman Ben S Bernanke has said that stricter regulatory measures would be the 'best' response to tackle housing bubble.
'Helicopter drop' was first proposed as an alternative to quantitative easing.
Finance Minister P Chidambaram on Monday said the currency will find its level as steps being taken by the government to contain fiscal and current account deficits will improve investor sentiments.
The precious metal spurted to regain Rs 27,000 level after June 24 as it rose in global markets following Federal Reserve Chairman Ben S Bernanke backed sustained stimulus for the for some time.
However, FII outflows of Rs 545 crore (Rs 5.45 billion) capped the gains in the rupee, which had slumped by 126 paise in past two days.
India's record current account deficit has been a key reason behind why Standard & Poor's and Fitch Ratings cut their outlooks on the country's sovereign rating to 'negative' last year.
He said cheap valuations, improving sentiment and the ongoing reform momentum coupled with increased transparency due to the internet are driving investors to the Dalal Street.
The NSE Nifty also closed at 16- month high at 4,958, up 66 points. US markets rose to calender year high on Tuesday after strong manufacturing and retail sales boosted commodity prices and shares of material companies.
These investors have pumped in about Rs 6,900 crore (Rs 69 billion) in the seven trading sessions after the Federal Open Market Commission meet.
sharper-than-expected economic recovery back home, analysts say, can fuel a further rally in domestic cyclicals, industrials, and financials as global central banks continue with their easy money policy.
India says it gives equal treatment to foreign companies on tax matters, not special consideration.
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The rupee is set to breach the Rs 60-a-dollar mark again this week as the Street expects foreign institutional investors to continue pulling out of domestic markets. According to the street, this would result in government bond yields rising.
US President Barack Obama has nominated Janet Yellen to head the Federal Reserve Board, describing her as one of America's "foremost economists and policy makers".
Global buyers are putting pressure on exporters to offer discounts between 10 per cent and 15 per cent.
The challenge for the RBI in 2024 is likely to be less about containing elevated inflation and more about curbing excessive financial market exuberance and a 'problem of plenty', notes Sajjid Chinoy, Chief India Economist JP Morgan.
The RBI has enough "fire power" to deal with the rupee volatility and will intervene in the forex market as and when required, said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
Germany is now sitting on a mountain of savings.
The minister further said the rupee will regain the ground it lost against other currencies in the past few days.
Years of unprecedented stimulus has left the Fed swollen with $4.5 trillion in bonds
The rupee is likely to strengthen to 60-61 level by this fiscal-end on expectations of improvement in current account deficit (CAD) and higher inflows from overseas investors.
The failure of SVB was due to idiosyncratic reasons, but shows how higher rates can expose fault lines in unforeseen places, observes Neelkanth Mishra.
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The rupee on Friday touched an all-time low of 62.03 to a dollar, spooking the equities market and dragging the Sensex down to 18,621.39 in the afternoon.
According to Subbarao, the pressure on the currency was inevitable.
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