Indian Stocks, Bonds Rally With Rupee After Unscheduled Rate Cut
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Indian stocks jumped the most in eight months and bonds rallied with the rupee after Reserve Bank of India Governor Raghuram Rajan unexpectedly cut interest rates to help revive growth in Asia’s third-largest economy.
The S&P BSE Sensex climbed 2.7 percent to 28,075.55, the biggest gain since May and the best performance in Asia after China. The yield on sovereign bonds due July 2024 slumped eight basis points, or 0.08 percentage point, the most since Dec. 2, to 7.69 percent. The rupee touched 61.4825 per dollar, the strongest level since Nov. 5. The iShares MSCI India ETF rallied 3.6 percent to $31.66 in U.S. trading.