The benchmark indices cheered RBI's first MPC outcome of the FY 22 as it maintained accommodative stance and kept key policy rate static at 4 percent. In the noon deal, indices traded higher by over 1 percent. This is even as the services PMI came in slightly lower at 54.6 for March month.
At the close, Sensex ended higher by 460 points, while Nifty gained 135 points to 14819. Also, the broader markets outperformed with gains of 1.32 percent on Nifty Midcap 100.
Among Nifty sectoral indices, all the indices traded in the green, with maximum gains on the Nifty PSU Bank index.
Individually on the Nifty index, top gainers include SBI, SBI Life, JSW Steel, Britannia and Hero Motocorp, while laggards included stocks like Adani Ports, UPL, Titan Company, Tata Consumer Products and NTPC.
The markets cheered RBI's ultra-dovish stance and highlighted that the Covid 19 remains the biggest challenge and central bank is better prepared to deal with the impact of the pandemic.
The heavyweight Reliance Industries' Jio on inking a deal with Bharti Airtel gained up to 3 percent. Other Sensex stocks lifting the index include ICICI Bank and Infosys.
Meanwhile, at the time of writing this copy, European indices were trading with gains of up to 0.86 percent on FTSE.