Reuters Market Eye - The BSE Sensex and the Nifty gain over one percent after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points as widely expected, while lowering short-term interest rates.
Some traders had been worried the RBI would raise interest rates more aggressively on Tuesday after saying on Monday it expects inflation to remain near the current elevated levels for the remainder of the fiscal year that ends in March.
Banks gain with ICICI Bank Ltd
Maruti Suzuki India Ltd
Cairn India Ltd
(Reporting by Aabhishek Vishnoi)