Mumbai (Maharashtra) [India], September 30 (ANI): The Indian stock market's benchmark Sensex surged by more than 1,200 points in the intra-day on Friday after the Reserve Bank of India (RBI) hiked the policy repo rate by 50 basis points, which was largely expected by the market.

The 30 stock SP BSE Sensex was trading 1238.48 points or 2.20 per cent higher at 57,648.44 points at 2.20 pm 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.

The markets witnessed a strong rally after the monetary policy announcement by the RBI.

On the expected lines the RBI's Monetary Policy Committee decided to raise 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 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 was trading 365.80 points or 2.18 per cent higher at 17,183.90 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 two of the 30 stocks that are part of the benchmark Sensex were trading in the red.

Bharti Airtel surged 4.76 per cent to Rs 801.85. IndusInd Bank soared 3.72 per cent to Rs 1185.65.

The index heavyweight Reliance Industries Limited was trading 2.95 per cent higher at Rs 2394. Tata Steel surged 2.74 per cent higher at Rs 99.50.

Titan, Bajaj Finserv, HDFC Bank, LT, Bajaj Finance, HDFC, Kotak Bank and Maruti Suzuki were among the major Sensex gainers. (ANI)