The BSE Sensex and Nifty rose on Wednesday, led by gains in export-focused companies after the rupee fell to a near two-year low in early trades, while bullish brokerage calls also helped drugmakers such as Sun Pharmaceutical Industries.
The dollar has surged by almost 20 per cent against a basket of major currencies in the past year as expectations have grown that the US Fed would become the first major central bank to hike rates since the financial crisis.
Gains in export-focussed companies and value buying in some other blue chips offset losses in financial stocks.
Upbeat economic data from the United States and a weak rupee are helping IT stocks, said Alex Mathews, head of research at Geojit BNP Paribas.
The Sensex closed 0.36 per cent up while the Nifty closed 0.34 per cent higher, after two days of losses.
Bullish sentiments were seen on the Bombay Stock Exchange with its barometer 30-scrip sensitive index closing 100.10 points - or 0.36 per cent - up at 27,931.64.
The positive sentiments were there at the wider 50-scrip Nifty of the National Stock Exchange (NSE) as well. It closed 28.60 points or 0.34 per cent up at 8,495.15 points.
Shares of export-focussed companies led the gains. Sun Pharmaceutical Industries rose 4.32 per cent after Bank of America Merrill Lynch upgraded the stock to "buy" from "neutral", citing the company's integration with Ranbaxy Laboratories, price hikes at unit Taro and improvement in US supplies as key reasons.
Glenmark Pharmaceuticals shares jumped as much as 3.48 per cent after the company received final approval from the US FDA for a copy of Bayer's Yaz contraceptive drug.
Among IT stocks, Infosys rose 0.97 per cent, HCL Tech gained 1.88 per cent and Wipro increased 2.14 per cent.
Shares of Delhi-based developers rose after reports that the country's environment ministry spelt out the dimensions of the eco-sensitive zone around Noida's Okhla bird sanctuary by limiting it to 1 KM. The move is expected to unfreeze projects that have been in limbo for two years.
Jaiprakash Associates surged 9.39 per cent, Jaypee Infratech gained 5.30 per cent, Unitech rose 0.70 per cent, while DLF fell by 1.02 per cent.
Meanwhile, Bharti Airtel fell 0.58 per cent after a report that Reliance Industries would roll out its Jio 4G-enabled handsets next month.
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