The 30-share BSE index jumped 460.37 points or 0.94 per cent to finish at 49,661.76. The broader NSE Nifty advanced 135.55 points or 0.92 per cent to 14,819.05.
The central bank kept the benchmark repurchase rate unchanged at 4 per cent and maintained accommodative policy stance to support growth.
India Inc today urged the Reserve Bank to reduce key policy rates to augment investments and boost economic growth.
The Reserve Bank of India cut rates, as slumping inflation allowed the central bank to focus on boosting an economy growing at the slowest pace in over two years.