Equity benchmark indices surged nearly 1 per cent on Thursday after the Reserve Bank of India (RBI) kept the repo rate unchanged at 4 per cent.
The BSE S&P Sensex closed 362 points or 0.96 per cent higher at 38,025 while the Nifty 50 gained by 99 points or 0.89 per cent at 11,200.
Except for Nifty PSU bank, all sectoral indices at the National Stock Exchange were in the green with Nifty IT gaining by 1.8 per cent, FMCG by 1.4 per cent and pharma by 1.2 per cent.
Among stocks, Tata Steel was the top gainer which moved up by 3.8 per cent to Rs 400.50 per share. JSW Steel advanced by 1.9 per cent to Rs 239.65 per unit.
Infosys was up by 2.9 per cent, Tata Consultancy Services by 2.2 per cent and HCL Technologies by 2.1 per cent. The other prominent gainers were GAIL, Bajaj Finance, UPL and ICICI Bank.
However, Eicher Motors was down by 1.3 per cent, Ad Ports by 0.9 per cent, Mahindra & Mahindra by 0.6 per cent and Bajaj Auto by 0.3 per cent.
Meanwhile, Asian markets were mixed as global investors hoped for a fresh stimulus in the United States to shore up the economy in the wake of COVID-19 crisis.
Japan's Nikkei index slipped by 0.43 per cent and Hong Kong's Hang Seng by 0.69 per cent. South Korea's Kospi rose by 1.33 per cent.
( With inputs from ANI )