The markets cheered the Reserve Bank's decision to keep the key lending rates unchanged, with the Bombay Stock Exchange benchmark Sensex surging over 360 points on good buying support in heavyweight stocks.
The 30-share Sensex, which lost 110 points in the previous day's trade, surged by 362.50 points, or 2.13 per cent, at 17,378.46 on Tuesday.
The wide-based National Stock Exchange index Nifty outshined the Sensex with a hefty gain of 105.85 points. Nifty surged to cross the psychological 5,200 points level during intra-day but winded up a tad lower up at 5195.50, At one stage, it touched a low of 5082.15 points.
The BSE barometer touched the day's high of 17,424.94 and a low of 17,011.60 points.
Brokers said the market sentiment turned cheerful after the Reserve Bank of India kept key lending rates unchanged in its annual credit policy today, barring a hike of 25 basis points in the cash reserve ratio.
The bankex index comprising 18 leading bank shares rose 147.91 points at 8964.75.
Housing Development Finance Corp., a mortgage lender, posted its steepest increase in almost three weeks. State Bank of India, the nation's largest bank by assets, rose to its highest since March 12.