Indian stock markets surged today, alongside Asian peers, after a bumper session on Wall Street as lower US inflation dimmed expectations of more aggressive Federal Reserve rate hikes. Data released on Thursday showed that the US consumer price index (CPI) was a lower-than-expected 7.7% in October, down from 8.2% in September. The US dollar slumped against rival currencies while US bond yields also fell sharply as investors cheered the prospect of less hawkish moves by the central bank.

Indian stock market benchmark Sensex rose over 1,000 points to 52-week high of 61,795.04 while the broader Nifty was up 321.50 points or 1.78% at 18,349.70. The rupee also strengthened to 80.74 against the US dollar, as compared to previous close of 81.81, according to Bloomberg data. Overnight, the US dollar index slumped more than 2% overnight to 108.1, the most in over a decade.

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"We expect the dollar index to remain weak and could test 105.00 levels in the short term. On the other hand, the rupee slipped against the U.S. dollar after profit taking in the domestic equity markets. However, weakness in the global energy prices and corrections in the dollar index supported the rupee at lower levels, Rahul Kalantri, VP Commodities, Mehta Equities Lt

Indian stock markets surged today, alongside Asian peers, after a bumper session on Wall Street as lower US inflation dimmed expectations of more aggressive Federal Reserve rate hikes. Data released on Thursday showed that the US consumer price index (CPI) was a lower-than-expected 7.7% in October, down from 8.2% in September. The US dollar slumped against rival currencies while US bond yields also fell sharply as investors cheered the prospect of less hawkish moves by the central bank.

Indian stock market benchmark Sensex rose over 1,000 points to 52-week high of 61,795.04 while the broader Nifty was up 321.50 points or 1.78% at 18,349.70. The rupee also strengthened to 80.74 against the US dollar, as compared to previous close of 81.81, according to Bloomberg data. Overnight, the US dollar index slumped more than 2% overnight to 108.1, the most in over a decade.