The BSE Sensex took off on a positive note at 33,289.96 and advanced to the day's high of 33,637.46 before ending at 33,596.80, up 577.73 points, or 1.75 per cent. It finally ended 351.56 points, or 1.05 per cent, down at 33019.07. Unveiling its first bi-monthly policy review for 2018-19, the Reserve Bank of India's Monetary Policy Committee has kept the repo rate unchanged at 6%, as widely expected. This is the benchmark's biggest fall since March 23, when it had lost 409.73 points.
The renewed fears of a trade war between the U.S. and China spooked the Indian market.
At the National Stock Exchange (NSE), the broader 51-scrip Nifty, which had closed at 10,128.40 points on Wednesday, was quoting at 10,244.15 points, up by 115.75 points or 1.14 per cent.
Rate sensitive stocks were at the forefront of the rally after the RBI eased NPA provisioning norms for banks. The overall market breadth corroborated the strong sentiment as more than 2,000 stocks gained on BSE against only 627 declines.
All 10 components of the index ended in the green. "On the other hand, volatility in oil price and rising interest rates globally may influence central bank to remain on hold", said Vinod Nair, Head of Research, Geojit Financial Services.
Meanwhile, domestic institutional investors (DIIs) bought equities to the tune of Rs 615.28 crore yesterday, while foreign portfolio investors (FPIs) net sold shares worth Rs 108.02 crore, according to provisional data.
Bank Nifty too rose 2.61% or 630 points to 24,759 level. State Bank of India was the top gainer, surging 4.66%. At 9.15am, the home currency was trading at 65.02 a dollar, up 0.19% from its Wednesday's close of 65.15.
The dollar index, which measures the USA currency's strength against major currencies, was trading at 90.161, up 0.02% from its previous close of 90.142.