Indian shares up 1.42 percent

Indian shares rose 1.42 percent on Thursday, reacting to Wall Street gains after the US Federal Reserve held interest rates unchanged as expected, dealers said. The benchmark Mumbai 30-share Sensex index rose 201.75 points to 14,421.82.
The markets were choppy on the expiry of the monthly futures market contract on Thursday. "The markets rose on continued short-covering. We may however see unwinding of positions if inflation data is weak tomorrow," said Bhaskar Kapadia, a partner with brokerage Pyramid Securities.
Inflation in Asia's third-largest economy rose to a 13-year high of 11.05 percent in the week ended June 7, well above the RBI's declared comfort level of 5.5 percent. On Tuesday the central bank raised its repo rate, at which commercial banks borrow funds from the central bank, to 8.5 percent from 8.0 percent.