This is the highest closing for both the indices since May 15.
The main reason was that CPI inflation would likely remain below 4 per cent till July.
So which sectors are likely to do well in 2022? Should you focus on domestic economy-related sectors or export-oriented ones?
The Rupee is 3.7 per cent undervalued on trade related basis.
Aviation companies were in focus with all the three airliners SpiceJet, InterGlobe Aviation and Jet Airways adding in the range of 2% to 3% on the BSE
In the second policy review under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut.
The benchmark BSE Sensex reclaimed the 28,000 mark, spurting by 409 points or 1.4% at 28,114 and Nifty settled above the 8,500 mark at 8,532, gains of 111 points.
RBI said inflation in the second half of the current fiscal is projected at 2.7-3.2%. It retained its GDP forecast for the current fiscal at 7.4%
The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- an indicator of manufacturing activity -- declined from 52.5 in April to a three-month low of 51.6 in May.
Top losers in the Sensex pack included IndusInd Bank, Yes Bank, SBI, L&T, Tata Steel, M&M, Bajaj Finance, Vedanta, Tata Motors and RIL, tumbling up to 6.97 per cent.
'From what evidence has come up, General Bajwa somehow managed to tell the Americans that I was anti-American.' 'And so, it [the plan to oust me] wasn't imported from there. It was exported from here to there.'
Wednesday's was the first MPC meeting that had a dissent note.
Although the pact would focus mainly on the Pacific and the South China Sea region, any action designed to deter China with or without New Delhi's active participation is a welcome move, notes Commodore Venugopal Menon (retd).
Rajan has ignored pressure to loosen policy.
The growth in the contact-intensive portion of the economy trailed our expectation, highlighting how imperative it is for confidence to improve, either through accelerated vaccinations or otherwise, to drive a sustainable recovery in these sectors, asserts Aditi Nayar.
Banks in India are expected to cut lending rates by up to 50 basis points by September as there is sufficient liquidity in the system.
The future belongs to the young; not the old, asserts Shyam G Menon.
To a specific question on the change in RBI's stance from "neutral" to "accommodative", Das said it means that there will not be any rate hike from here on.
The repo rate, at which the central bank lends to the system, will come down to 5.75 per cent after the cut.
Bankers on Tuesday said the RBI's decision to hold key rates, coming after a decisive mandate received by the Narendra Modi government, was on expected lines and interest rates won't change even though the central bank's SLR cut infuses additional liquidity into the system.
RBI retained the GDP growth for the financial year 2018-19 at 7.4 per cent.
India's GDP may turn positive at 1.3 per cent in the third quarter of 2020-21, having witnessed contraction in the previous two quarters due to the coronavirus pandemic, as the number of cases is falling and public spending has started rising, according to a report. The government will release the GDP numbers for the October-December quarter of the current fiscal on Friday. Projecting that the gross domestic product (GDP) may have returned to the black in the last quarter of the calendar year 2020, DBS Bank in the report said the full-year growth in real terms may be at a negative 6.8 per cent.
The agreement would divert China's attention and keep them busy in the Pacific theatre, probably resulting in a reduction in threat perception in our area of interest in the Indian Ocean, notes Commodore Venugopal Menon (retd).
Sun Pharma was by far the biggest gainer in the Sensex pack, surging 8.13 per cent, followed by Dr Reddy's at 4.92 per cent.
India remains one of the most over-owned market in Asia.
They pointed out that Finance Minister Nirmala Sitharaman relies a lot on divestments, where the government under-performed in FY2019-20, to achieve the 3.8 per cent fiscal deficit target.
In the Sensex pack, Sun Pharma was the biggest gainer, rallying 4.48 per cent, followed by Bajaj Auto, Tata Motors, Coal India, Hero MotoCorp, Maruti and HCL Tech, rising up to 3.01 per cent. While, RIL, PowerGrid, HDFC, L&T, IndusInd Bank, NTPC and Bajaj Finance declined up to 1.50 per cent.
'During the transition process, we have some control over the withdrawals.' 'In terms of your wealth, the money in your deposit account is where it is.'
'As long as Pakistan exists, the situation will not stabilise and violence is bound to erupt from time to time.' 'Though not a final solution, a step that could help localise the abscess -- trifurcate Jammu and Kashmir state into three parts: Jammu, Ladakh and the Valley.'
Analysts at Bank of America Merill Lynch said that fears of inflation getting "generalised" are overdone, as only two sub-categories of fuel and light and housing (accounting for 22 per cent of the basket) have seen a price-rise above the headline 5.2 per cent.
'The MEA, hopefully, made it clear that the Indian PM can't be seen in Xi Jinping's company when China has, for all intents and purposes, annexed over 1,000 sq kms of Indian territory in eastern Ladakh, and essentially that the Wuhan spirit and the Mamallapuram spirit have turned into vinegar.'
'No matter what Modi may boast about 'new India', the geopolitical reality is that India's stature diminishes when it needs a small country like Saudi Arabia under an autocratic ruler to help out with what is arguably one of the most critical templates of its diplomacy,' says Ambassador M K Bhadrakumar.
'Our discussions with investors and the market's multiples suggest that Prime Minister Narendra Modi winning 2019 is being priced in,' says a UBS report.
There is a near consensus that at least a 25 basis points cut, if not 50, can be expected in the June policy.
'Course correction today would be good politics and also good economics,' notes T N Ninan.
The Reserve Bank of India cut its repo rate by 25 basis points to 6.50 per cent.
China, the Ukraine crisis and Quad will dominate the discussions, observes Dr Rajaram Panda.
RBI lowered economic growth for the current fiscal to 6.9 per cent from the previously projected 7.1 per cent, but saw it bouncing back in a big way to 7.4 per cent in 2017-18.
The wholesale price index inflation is projected at 6.4 per cent for 2017-18.
Wholesale inflation shot up to a 30-month high of 5.25 per cent in January as rising global crude oil prices spiked domestic fuel cost, even as food prices moderated.
