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India's trade deficit narrowed to $6.7 billion last month, compared with $10.9 billion in August.
The rupee strengthened to 61.9650 per dollar at 0625 GMT from around 62.10 before the data, while the benchmark 10-year bond yield initially fell around 4 basis points but then recovered to trade at 8.44 percent, still down from its 8.50 percent close on Tuesday.
Shares also added gains after the trade data, with the broader NSE index up 0.58 percent.