The Indian stock market’s benchmark Sensex surged by over 1,000 points on Friday after the Reserve Bank of India (RBI) hiked the policy repo rate by 50 basis points, which was largely expected by the markets.

The 30-stock S&P BSE Sensex surged 1,016.96 points or 1.80 per cent to 57,426.92 points against its previous day’s close at 56,409.96 points. The Sensex started the day in the red at 56,240.15 points and slumped to a low of 56,147.23 points in the early morning trade.

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The markets witnessed a strong rally after the monetary policy announcement by the RBI. The Sensex surged to a high of 57,722.63 points in the intra-day. The Sensex has closed in the positive for the first time in the past eight trading sessions.

On the expected lines, the RBI’s Monetary Policy Committee decided to raise the policy repo rate by 50 basis points or 0.50 per cent to 5.90 per cent.

The Monetary Policy Committee (MPC) met on 28th, 29th and 30th of September 2022. Based on an assessment of the macroeconomic situation and its outlook, the MPC decided by a majority of five members out of six to increase the policy repo rate by 50 basis points to 5.9 per cent, with immediate effect, RBI Governor Shaktikanta Das said while making the announcement about the MPC decisions.

Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.65 per cent; and the marginal standing facility (MSF) rate and the Bank Rate to 6.15 per cent.

The MPC also decided by a majority of 5 out of 6 members to remain focused on the withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth, the governor said.

The broader Nifty 50 of the National Stock Exchange surged 276.25 points or 1.64 per cent to 17,094.35 points.

The Nifty started the day in the red at 16,798.05 points and slumped to a low of 16,747.70 points in the morning trade. The Nifty surged to a high of 17,187.10 points in the intra-day.

There was broad-based buying support. Only five of the 30 stocks that are part of the benchmark Sensex closed in the red.

Bharti Airtel surged 4.49 per cent to Rs 799.75. IndusInd Bank soared 3.78 per cent to Rs 1186.30

The index heavyweight Reliance Industries Limited surged 2.25 per cent to close at Rs 2377.70. Tata Steel surged 2.53 per cent to Rs 99.30.

Banking and financial stocks soared. HDFC Bank surged 2.93 per cent to Rs 1422.40. Kotak Bank jumped 3.22 per cent to Rs 1821.25. ICICI Bank soared 2.22 per cent to Rs 862.80. State Bank of India closed 1.74 per cent higher at Rs 531.05.

Asian Paints slumped 1.26 per cent to Rs 3342.15. Dr Reddy’s Laboratories, ITC, Tech Mahindra and Hindustan Unilever were the other Sensex losers.