Benchmark Indian indices rallied in trade following a solid set of global cues even as banking stocks fell as investors digested the 50 basis points cut by the RBI.

The Sensex ended the day with gains of 376 points, while the Nifty rallied 105 points in trade. A sharp rally in stocks from the IT and FMCG pushed indices higher.

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Stocks that have seen heavy selling pressure in the past like Bharti Airtel and Bhel also found buyers at lower levels.

Banking stocks were badly hit in trade and did not participate in today's rally. Axis Bank, Bank of Baroda, Canara Bank, Yes Bank, State Bank of India and Kotak were among the major losers in trade.

Tata Motors saw buying support despite S&P revising the company's outlook to stable from positive. Tata Steel ended the day with gains after reports that steel companies were set to increase prices.

Meanwhile, markets across Asia ended the day higher led by gains in the Japanese Nikkei. The Shanghai Composite and the Hang Sang were the other markets that gained.

European stocks were up more then 2 per cent after the battering received in the early part of the week.

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