The rupee gained modestly on Wednesday as the government eased rules for foreign investment, adding to measures taken by the RBI to suck out rupee liquidity.
The rupee was at 59.19/20 after rising to 59.05 as against 59.31/31 last close.
However, bond yields jumped, adding to Tuesday's large bond price losses. Yield on the most traded 8.33 pct 2026 bond was 10 basis points higher at 8.27 percent.
The government relaxed FDI rules in various industries in a bid to attract capital inflows, help the rupee and boost growth.
Following decisions on FDI limits were taken at a meeting chaired by Prime Minister Manmohan Singh.
* FDI cap in telecom raised to 100% from 74\% up to 49% through automatic route and beyond via FIPB
* No change in 49 percent FDI limit in civil aviation
* FDI cap in defence production to stay at 26 percent higher investment may be considered in state-of-the-art technology
production by CCS.
* 100 percent FDI allowed in single brand retail; 49 percent through automatic, 49-100 percent through FIPB
* FDI limit in insurance sector raised to 49 percent from present 26 percent, subject to Parliament approval
* FDI up to 49 percent in petroleum refining allowed under automatic route, from earlier approval route
* In power exchanges 49 percent FDI allowed through automatic route, from earlier FIPB route.
* Raised FDI in asset reconstruction companies to 100 percent from 74 percent; of this up to 49 percent will be under
* FDI limit increased in credit information companies to 74 percent from 49 percent
* FDI up to 49 percent in stock exchanges, depositories allowed under automatic route
* FDI up to 100 percent through automatic route allowed in courier services
* FDI in tea plantation up to 49 percent through automatic route; 49-100 percent through FIPB route
* No decision taken on FDI cap in airports, media, brownfield pharma and multi-brand retail.