Sensex soars 275 points, Nifty jumps 91 points as RBI hikes rate

New Delhi: Stock market closed in green following the outcome of RBI's bi-monthly policy meet on Wednesday.

The Reserve Bank for the first time in four-and-half-years raised key interest rate today by 25 basis points to 6.25 percent on inflation concerns arising from surge in international oil prices.

The 30-share index surged 275.67 points to close at 35,178.88. The NSE Nifty also went up by 91.50 points to 10,684.65.

Shares of Bharti Airtel, Tata Motors, Sun Pharma, SBIN, Coal India, M&M, Bajaj AUto, Wipro, Tata Steel, ITC, Hero Moto Corp and Infosys climbed up to 4.55 percent.

“The markets will probably take solace in the fact that the central bank continues to maintain a neutral stance and has not moved towards a removal of accommodation stance. This suggests that, unless further inflation prints are significantly higher, the August committee meeting may keep policy rates unchanged. Higher inflation in the immediate future could however increase the probability of a further increase in policy rates,” said Dheeraj Singh – Head of Investments & Fund Manager – Fixed Income, Taurus Mutual Fund.