10 things to know about stock markets today:
Tata Steel, Tata Motors, ICICI Bank, Wipro, Indiabulls Housing Finance were leading the pack of Nifty gainers. While the main losers on NSE were Titan, Induslnd Bank, Coal India, Lupin and Eicher Motors.
In the 30-shareSensex pack, the main gainers were Bajaj Auto, HDFC Bank, Maruti Suzuki and TCS. The losers were Coal India, ICICI Bank, Tata Motors and Sun Pharma.
"The market is rising as monsoon is about to hit Mumbai. In the last 10 years, every time rains hit Mumbai, market gives thumbs up and rises between 1-1.5 per cent. It is a unique thing," said A K Prabhakar, Head of Research at IDBI Capital.
"A day after the Reserve Bank hiked rates, the markets continued to rally on the relief that an important event was now in the rear view mirror," said VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities.
The Nifty private bank index rose as much as 1.5 per cent. Axis Bank and ICICI Bank jumped over 2 per cent each while HDFC Bank Ltd was up 1 per cent.
Index heavyweights such as Reliance Industries Ltd and Infosys Ltd climbed 1 per cent each. Reliance Industries posted its sixth straight session of gains to rise 1.7 per cent
Shares of Hindustan Unilever Ltd rose as much as 1.7 per cent after brokerages reaffirmed their confidence in the company's growth strategy.
"The rate hike is a negative but markets are recovering due to short-covering, since people sold off their positions at higher levels prior to the RBI meet and are now covering their positions at lower prices," said Sumit Pokharna, Vice president, Kotak Securities.
Positive leads from Asian markets and sustained buying by domestic institutional investors added to the momentum, brokers said. Growing inflation concerns prompted the RBI's Monetary Policy Committee (MPC) to lift the repo rate by 25 basis points while maintaining its 'neutral' stance instead of changing to 'tighten'. (With inputs from Agencies)