A morning walk down Dalal Street | Nifty needs to close above 11,571 for move towards 11,620

A smart recovery towards the close of the session with Sensex rising by over 200 points while the Nifty50 reclaimed 11500 levels comfortably.

It was a volatile day for Indian markets thanks to fall in rupee which closes just below Rs 72/$.

The index needs to close above 11,571 for it to move towards 11,620 levels.

Support on the downside is placed at 11500, 11393 levels.

With yields crossing 8 percent, there will be increased fiscal costs on the part of the government every year. We expect such costs to be at least Rs 6000-7000 crore, SBI said in a report.

With crude oil averaging to $76/bbl for the remaining half and average exchange rate at Rs 73/ US dollar, the extra cost could go up to Rs 45,700 crore.

If the rupee continues to depreciate, it may move RBI towards increasing the regulatory interest rates.