Benchmark equity indices Sensex and Nifty closed higher by more than half a per cent on Wednesday following buying in IT, financial and oil stocks after the RBI slowed down the pace of interest rate hikes.
Ending its two-day slide, the 30-share BSE Sensex rebounded by 377.75 points or 0.63 per cent to close at 60,663.79 with 24 of its constituents posting gains.
The broader Nifty of the NSE spurted by 150.20 points or 0.85 per cent to settle at 17,871.70, riding on a rally in Adani Enterprises, Adani Ports and HDFC Life.
Among Sensex stocks, Bajaj Finance rose the most by 3.14 per cent. Ultratech Cement, Reliance Industries, Infosys, Wipro, HCL Tech, TCS, Bajaj Finserve, Tata Motors, Tech Mahindra, Titan and Maruti were among the major gainers.
L&T declined the most by 1.62 per cent, followed by Bharti Airtel, Axis Bank, Kotak Bank and Hindustan
Unilever.
The Reserve Bank of India slowed the pace of interest-rate increases for the second straight time when it on Wednesday expectedly increased borrowing costs by 25 basis points.
The RBI also projected retail inflation to ease to 5.3 per cent in the next fiscal from 6.5 per cent this year on assumptions of lower imported inflation.
The rupee appreciated 19 paise to close at 82.51 against the US dollar on Wednesday after the Reserve Bank of India (RBI) hiked the repo rate by 25 basis points.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,559.96 crore, according to exchange data.