The Sensex and the rupee staged a smart recovery in noon trade even as global markets were steady. The Sensex surged 325 points, on the back of a strong rupee, which gained 59 paise at 67.04 in noon trade.
In fact, the rupee continued to sink once again in early trade inching toward its previous record of 68.81 to the dollar. However, there may have been some RBI intervention today after the sharp fall of 2 per cent on Tuesday, which saw the rupee gain 59 paise.
Sharp gainers in trade today were the banking stocks, which rallied on the back of a recovery in the rupee, which pushed bond yields lower and bond prices higher. IndusInd was the top gainer from the Nifty in noon trade, followed by gains in Tata Motors, Ranbaxy and Bhel.
Banking stocks that rallied in trade were Yes Bank, Kotak Mahindra and Axis Bank, HDFC Bank, Canara Bank and Union Bank of India.
Heavyweight, Reliance Industries also contributed to today's gains rallying more then 3 per cent, while other heavyweight, ITC continued to trade with losses.
Among the top losers were DLF, which shed more then 3 per cent on reports that the RBI has tightened home loans. Among other Nifty stocks that joined DLF in losing ground were Maruti Suzuki and power Grid.
Markets are expected to continue taking cues from the rupee and seemed to have de-coupled itself from global markets.