MUMBAI, June 12 (Reuters) - STOCKS:

The benchmark BSE Sensex rose 149.98 points, or 0.2%,

to 76,606.57, while the broader NSE index gained 60.05

points, or 0.26%, to 23,324.9, driven by a surge in state-owned

companies on hopes of policy continuity, while investors awaited

key inflation readings and U.S. Federal Reserve's rate decision.

RUPEE:

The Indian rupee strengthened 0.02% versus the U.S.

dollar, and quoted at 83.5450 per dollar after the Reserve Bank

of India's stern defence of the currency spurred dollar sales

towards the end of the trading session.

GOVERNMENT BONDS:

The benchmark 10-year bond was quoted at 100.63

rupees, with the yield little changed at 7.0089%, ahead of key

inflation prints and Fed policy.

OVERNIGHT INDEX SWAPS:

The one-year overnight index swap rate was up 3

bps at 6.78%, while the benchmark five-year swap rate

rose 4 bps to 6.36%.

CALL MONEY/REPOS:

India's overnight call money rate was down 10 bps at

6.40%. The overnight TREPS rate was at 6.45%,

compared with the previous day's weighted average of 6.4468%.

(Reporting by Bhakti Tambe; Editing by Mrigank Dhaniwala)