Rupee rises, risk assets gain

Rupee extends rise to 55.38/40 from previous 55.93/94 close. Domestic stocks and emerging Asian FX gain after China posted GDP in line with expectations, easing worries about a sharp slowdown in growth in the continent's largest economy.

The BSE Sensex gains 0.4 percent, recovering after two sessions of falls.

Limited impact seen after an official says India's trade deficit is expected to narrow in the fiscal year ending in March from the $184.9 billion posted in the previous fiscal year.