The NSE Nifty too ended 58.60 points, or 0.54 per cent, higher at 10,967.30 after shuttling between 10,985.15 and 10,928 during the session.
The July-September quarter GDP numbers are due on November 30.
The RBI has hiked repo or short-term lending rate up by 0.25 pc to 7.75 pc.
'Helicopter drop' was first proposed as an alternative to quantitative easing.
Fresh dollar selling by banks and exporters largely helped the home currency to recover from early losses
Profit-booking by participants in view of the domestic markets' recent record-setting run fuelled the downtrend
Some say the MPC will raise the rate, while others are of the view that there is already de facto interest rate tightening through rising bond yields, which might prompt the central bank to go for a pause.
With the 'busy credit season' which witnesses a spurt in loan demand going up, it would be good to lower the rates ahead of it
Other than ITC, other laggards include PowerGrid, Infosys, M&M, NTPC, SBI, HDFC, Kotak Bank, HDFC Bank, TCS, Hero MotoCorp, Coal India, ONGC, RIL, Asian Paint, IndusInd Bank, ICICI Bank, Maruti Suzuki, Bajaj Auto, Tata Motors, Bharti Airtel and Axis Bank.
Achieving inflation target of 4 per cent, recovery after remonetisation and hardening profile of oil prices are some of the risks which the RBI is watching closely, says Gaurav Kapur.
'The probability of another negative year in 2019 is low.'
Market breadth continued to remain strong, with 1899 gainers and 674 losers on the BSEs.
Traders said reduced offtake by retailers and stockists at prevailing higher levels mainly kept pressure on gold and silver prices.
Retail inflation crossed the RBI's comfort level and rose to 5.21 per cent in December on increase in prices of food items.
The rupee's strength against its competitor could come to haunt exporters.
Stating that the forthcoming elections will delay the reform process and hurt growth, international rating agency Moody's on Monday said it expects growth to pick up to only 5.5 per cent in FY15.
US interest rate normalisation policy is likely to keep global FX markets volatile.
There will very little direct impact from the US Fed's rate hike this time, as we are well prepared both to handle liquidity, outflow of FII funds and managing our currency. But that doesn't mean India will be out of the woods anytime soon, says M V Subramanian.
'The 'Off-with-Rajan's-head' brigade bases its arguments on mistaken beliefs, erroneous causalities, and even downright prejudice.'
Ana Konjuh has opened some eyes at Flushing Meadows as the 18-year-old former world number one junior emerged to reach her first Grand Slam quarter-final at the US Open.
Buying activity was so strong that all the sectoral indices except IT and technology ended in the green, rising by up to 3 per cent
The rupee had lost more than 8 per cent since the first week of May, after the US Fed indicated it may start scaling back its monetary stimulus programme later this year.
Investors not stop their SIPs or STPs due to election-related uncertainty.
It was the second straight week of gains for the benchmarks.
The dollar-rupee rate could move in the opposite direction if dollar policy rates rise and the FPIs sell in December, says Devangshu Datta.
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Traders said continued selling by stockists in tandem with a weakening global trend, on speculation that the US Fed may begin scaling back monetary stimulus as the economy improves, mainly kept pressure on prices.
The partially convertible rupee closed at 61.2350/2450 per dollar compared with 61.31/32 on Tuesday.
The total market capitalisation of BSE-listed companies fell by Rs 1.36 lakh crore to Rs 93.33 lakh crore.
'Industrial countries are still struggling, with a few exceptions, to grow and the uncertainty about growth in the US as well the world is probably what impelled the Fed to stay on hold.'
India Ratings principal economist Sunil Kumar Sinha said the Brexit is a mixed bag for the country.
Aditya Birla Money MD talks about liquidity concerns in the market.
He said cheap valuations, improving sentiment and the ongoing reform momentum coupled with increased transparency due to the internet are driving investors to the Dalal Street.
The precious metal has now lost Rs 280 in last three days.
Reserve Bank Governor Raghuram Rajan today criticised multilateral institutions like the IMF and the World Bank saying "they are not immune to cognitive capture".
Jim Rogers, chairman of Rogers Holdings, tells Puneet Wadhwa that the US bond market that hit bottom in 1981 and has been in a bull-run since then, is coming to an end.
The RBI fixed the reference rate for the dollar at 64.1505 and for the euro at 72.2720.
Increased demand from oil importers for the American currency and a weak opening in the domestic stock market also put pressure on the rupee.
Wednesday's hawkish and essentially courageous decision underscores that Governor Urjit Patel will largely represent continuity, rather than a break, with the policies and approach of his predecessor, says Richard Iley.
Falling sales since demonetisation has alarmed CEOs, who want to save cash till the economy recovers.
