The rupee gained a staggering 37 paise following the RBI credit policy, wherein repo rates were cut by 25 basis points. The strong rupee is likely to dampen the performance of IT and Pharma companies. Both these sectors are facing a downturn and performance is teetering. On Wednesday, Lupin, India's second largest pharma company reported a sharp downturn in performance in the US.

The rupee has now seen the best closing for since July 22, 2015, when it had ended at 63.58 against the US dollar. Check currency rates here

On Wednesday, the RBI may have bought dollars towards the fag-end which may have prompted the rupee to end at 63.70.

Analysts believe that there may not be too much of an upside as the Reserve Bank of India may continue to mop-up dollars. the sharp gains seen in the rupee may also be on account of the RBI policy, where the central bank cut interest rates after 10 months.