Sensex ends 276 points higher
The Sensex ended at 35178.88, up 275.67 points, while the Nifty ended at 10684.65, up 91.50 points.
With the RBI hiking repo rate to 6.25%, the markets ended higher. This is the first rate hike in over four years.
The RBI also revised its retail inflation estimate for 2018-19 to 4.8-4.9% for the first half, and 4.7% for the second.
Shares of rate sensitive sectors such as bank, real estate and automobiles were trading firm after RBI monetary policy decision.
Among individual stocks, State Bank of India (SBI), Bank of India and Allahabad Bank from the banking, Indiabulls Real Estate, Godrej Properties and Oberoi Realty from real estate, and Tata Motors, Eicher Motors, Bosch and Bharat Forge from auto sector were up more than 2% on the NSE.