Sensex, Nifty Log Biggest Single-Day Gain In Over Six Months

India's stock benchmarks rose the most in a single-day since May 21, aided by gains in auto, banking, metal and information technology stocks, after RBI's rate-setting panel voted to keep policy rates unchanged and signalled commitment to support 'durable, strong, inclusive' recovery.

The S&P BSE Sensex rose 1.76% to 58,649.68. The NSE Nifty 50 index also advanced by similar magnitude to 17,469.75. The 50-stock gauge reached within touching distance of 17,500 in intraday trade.

Infosys Ltd. contributed the most to the index gain, increasing 2.4%. Bajaj Finance Ltd. had the largest increase, rising 3.6%.

The broader markets almost mirrored their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap rising nearly 1.5%. All the 19 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Auto and S&P BSE Tech gaining over 2%.

The market breadth was skewed in the favour of bulls. About 2,328 stocks advanced, 951 declined and 132 remained unchanged.

"RBI kept accommodative stance with interest rate unchanged at 4% and reverse repo rate at 3.35% and will maintain this stance as long as necessary to revive and sustain growth, which gives a clear signal that RBI is giving a strong & durable support to the economy without downsizing any support which will be beneficial for the equity markets as well", Mohit Nigam, Head - PMS, Hem Securities wrote in a note and added that the markets have given a stellar run up today giving a thumbs up to RBI's comments. "Despite record equity selling by FIIs, RBI has done well to defend the currency and made sure that imported inflation is under check. Immediate support and resistance for Nifty 50 is 17,200 and 17,700 and for Bank Nifty is 36,900 and 37,800."

Shares of Biocon Ltd. rose 7.7% to Rs 387.9 apiece after the company entered into a partnership with Tabuk Pharmaceutical to commercialise specific specialty products in the Middle East region.

Under the agreement, Tabuk Pharma will hold the marketing authorization for the products. The partnership is likely to pave the way for Biocon's expansion into MENA region.