Yellen recently faced rebellion with two Fed governors arguing that rate hikes should be delayed because of abreakdown in the tendency of low unemployment to fuel faster inflation.

Dal prices have risen across the country due to a shortfall in domestic output by 2 million tonnes in 2014-15 hit by poor rains.

Fed Chair Janet Yellen had affirmed on an increase in rates by year-end. But, in wake of global economic slowdown, led by China, experts believe an increase in rates is not likely before next year.

The Assocham study showed that prices of goods and services consumed on a daily basis are growing beyond the comfort level for most Indians.

According to the global financial services firm, better production numbers and improved discretionary spending are encouraging for the country's growth prospects.

There was more evidence of the problems plaguing Asian trade flows with Japanese exports growing at the slowest pace since mid-2014.

\"We believe in remaining period of 2015, tentative range of the rupee will be 64-67 a dollar,\" said Tarun Satsangi of Globe Capital Market.

Equities added to gains late in the session, and eight of the S&P 500 sectors registered increases of more than 1 per cent.

Expressing concern on the rise in prices of food articles, industry bodies said the government must take steps to ensure the prices of essential commodities remain in check.

The prospect of a delayed rate hike boosted US Treasuries, which saw the benchmark 10-year note yield fall from 2.05 per cent on Wednesday to as low as 1.97 per cent.

The government data released on Wednesday showed pulses, vegetables and onion turning costlier even as the overall deflationary trend persisted for 11th month in a row.

Foreign investors have piled into the country's stock market excited by reform rhetoric in the world's fastest-growing large economy. But living up to expectations won't be easy.

According to Japanese financial services firm Nomura, despite slowing external demand, the domestic growth cycle is improving.

The domestic markets ended in negative zone in a volatile trade on Tuesday, tracking weaker trend in other Asian markets and on profit booking by investors.

The guidelines on foreign portfolio investment (FPI) limits in G-secs will help broaden participation across the yield curve, help investors plan allocations systematically and alleviate concerns over 'hot money' outflows in the event of global volatility resurgence, rating agency India Ratings and Research said.

The government revised the August CPI inflation to  3.74 per cent  from the previous 3.66 per cent.

Among Asian markets, China's Shanghai Composite was trading 3.5 per cent higher, Hong Kong's Hang Seng 0.82 per cent up, while Japan's Nikkei added 1.64 per cent at close.

On Monday, the govt will release the factory output data for August and inflation figures for September. Both the data will give future guidance to RBI's next move on lending rates.

Even if inflation picks up in September as economists predict, it would still be comfortably below the RBI's 6 per cent target for January.

Yum posted its third straight quarter of sales declines in India, where analysts say it is being outpaced by ambitious rivals like Domino's Pizza Inc and McDonald's Corp.