The SP BSE Sensex surged over 300 points on Thursday and was racing towards the 35,500 level.
At 11 am, the Sensex was up 312.98 points or 0.89 per cent higher at 35,491.86 level while the broader Nifty50 was at 10,779.75, up 95.10 points or 0.89 per cent.
The gains in the 50-share Nifty50 pack of the National Stock Exchange (NSE) were led by Hindalco (up 2.52 per cent), Vedanta (up 2.48 per cent), Axis Bank (up 2.47 per cent), ICICI Bank (up 2.08 per cent), and Adani Ports (up 2 per cent).
Forty four out of 50 stocks in the Nifty50 index advanced.
At the intra-day high, the Sensex was at35,510.63 level as it surged 331.75 points Wednesday's close of 35,178.88 points.The markets rose a day after after the Reserve Bank of India, in a surprise move, raised the ley lending or repo rate to 6.25 per cent but maintained a neutral stance in its June policy outlook.
This rate hike from RBI came after a gap of four-and-a-half years, as it became the latest bank in Asia to increase rates recently, to battle inflationary pressures.All 12 stocks in the Nifty Bank index rose to a high of 1.14 per cent.The global outlook supported the domestic indices as MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent to extend its gains, hitting a 2-1/2 month high for a second straight day.In overnight trade, the Dow Jones Industrial Average rose 1.4 per cent to 25,146.39, the SP 500 gained 0.86 per cent to 2,772.35 and the Nasdaq Composite added 0.67 per cent to hit its record closing high of 7,689.24.
(With Reuters inputs)