Here are 10 things to know about the markets today:
Adani Ports, ICICI Bank, Hindalco, UltraTech Cement, Sun Pharma, closing between 4.01 per cent and 4.86 per cent higher, were the top gainers in the Nifty basket of 50 shares.
On the other hand, Reliance Industries, HDFC Life, Bajaj Finserv, Bharat Petroleum and HCL Tech - down 0.49-0.83 per cent each - were the worst ahit among 11 laggards in the index.
ICICI Bank, HUL, Bharti Airtel and HDFC Bank were the biggest contributors to the gain in Sensex.
The RBI kept key interest rates steady as widely expected on Friday amid persistently high inflation, and after a better-than-expected reading on economic growth.
RBI Governor Shaktikanta Das said the country's prospects have brightened with progress on COVID-19 vaccines, consumer confidence has turned positive and projected real GDP for the current financial year to contract just 7.5 per cent.
The upward revision in GDP projections, from 9.5 per cent in October, comes days after official data showed the country's GDP shrank at a better-than-expected 7.5 per cent in the July-September period, from a record 23.9 per cent slump in the previous quarter.
Analysts say the latest RBI policy reinforces optimism on a fast economic revival after months of slowdown caused by the coronavirus pandemic.
“An accommodative liquidity stance will ensure access to liquidity will not be a challenge and the ongoing recovery continues to gather steam. This will help push through govt borrowings in a year where the revenues are under pressure. Guidance is better than earlier on growth and flows. Positive for markets," said Ashish Shanker, deputy managing director and head of investment at Motilal Oswal Private Wealth Management.
Asian shares scaled a record high on growing prospects of a large US economic stimulus package, while hopes that coronavirus vaccine rollouts will boost the global economy underpinned investor sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.78 per cent, surpassing its November 25 peak, while Japan's Nikkei dipped 0.22 per cent on profit-taking.