Domestic equity benchmark Sensex surged 362 points on Thursday after the RBI left interest rates unchanged but maintained an accommodative stance to boost growth.
After rallying 558 points during the day, the BSE Sensex ended 362.12 points or 0.96 per cent higher at 38,025.45. The broader NSE Nifty jumped 98.50 points or 0.89 per cent to 11,200.15.
Tata Steel was the top gainer in the Sensex pack, rising around 4 per cent, followed by Infosys, Bajaj Finance, TCS, HCL Tech, ICICI Bank and Tech Mahindra. On the other hand, Bharti Airtel, M&M, L&T and Axis Bank were among the laggards.
Earlier in the day, the Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, left the benchmark repurchase (repo) rate unchanged at 4 per cent. Consequently, the reverse repo rate will continue to earn 3.35 per cent for banks for their deposits parked with the RBI.
Das said the MPC voted for keeping the interest rate unchanged and continued with its accommodative stance to support growth. According to experts, market participants cheered the RBI's balanced approach, which is seen in line with expectations that the central bank will be looking at alternate measures such as forward guidance and maintain sufficient liquidity.
On the currency front, the rupee settled flat at 74.94 against US dollar. In the global market, bourses in Shanghai and Seoul ended with gains, while Hong Kong and Tokyo closed in the red.
Stock exchanges in Europe were also trading on a negative note in early deals. Brent crude futures, the global oil benchmark, slipped 0.04 per cent to USD 45.19 per barrel.