Stock markets rally as macro headwind eases, Sensex rises 260 points

The benchmark indices gained for a second day as investor sentiment improved following easing of the  macro headwind. The Sensex rose 262 points, or 0.8 per cent, to 34,925, while the Nifty 50 index rose 91 points, or 0.9 per cent to 10,605. A day earlier, both the indices had gained nearly one per cent each. A sharp recovery in the rupee, drop in oil prices and cooling off of bond yields eased inflation and fiscal deficit concerns. 

The rupee rose 0.84 per cent to 67.77 against the dollar and the yield on the 10-year government security dropped seven basis points