The Indian equity benchmarks extended gains after the Reserve Bank of India's Monetary Policy Committee held repo rate at record low of 4 per cent and maintained accommodative policy stance to support growth for as long as necessary. The Sensex rose as much as 1,016 points or 1.65 per cent and Nifty 50 index moved above its important psychological level of 17,450 led by gains in banking, financial services and information technology shares.
As of 2:02 pm, the Sensex was up 1,014 points at 58,648 and Nifty 50 index climbed 288 points to 17,465.
RBI's benchmark interest (repo) rate currently stands at 4 per cent and the reverse repo rate is at 3.35 per cent. The central bank has kept the key lending rates unchanged for ninth time.
RBI Governor Shaktikanta Das said that the MPC voted unanimously to hold rates and maintain an accommodative stance as long as necessary to push growth while ensuring inflation remains under control.