Mumbai: Ahead of the outcome of the RBI monetary policy meet later Thursday, the barometer 30-scrip Sensitive index (Sensex) of the BSE surged over 400 points tracking positive cues from the Asian markets, along with healthy buying in metals, auto and banking stocks.
The other benchmark index -- the NSE Nifty50 -- edged higher by almost 150 points during the mid-afternoon trade session.
According to market observers, interest rate sensitive stocks like auto, banking and realty rose ahead of the outcome of the central bank's first bi-monthly monetary policy of 2018-19.
Around 12.40 p.m., the wider Nifty50 of the National Stock Exchange (NSE) traded higher by 143.30 points or 1.41 per cent at 10,271.70 points.
The barometer 30-scrip Sensitive index (Sensex) of the BSE, which opened at 33,289.96 points, traded at 33,465.30 points -- up 446.23 points or 1.35 per cent from its previous session's close.
The Sensex has so far touched a high of 33,499.32 points and a low of 33,267.86 points during the intra-day trade.
The BSE market breadth was bullish with 1,963 advances and 545 declines.
Tata Motors, Tata Steel, Mahindra and Mahindra, Larsen and Toubro, and ICICI Bank were the top gainers on the BSE.
"Sensex and NSE Nifty surged over one per cent in the opening trade on Thursday ahead of RBI's monetary policy decision due after 2.30 p.m.," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
"Asian shares gained tracking US equities as investors hoped a full-blown trade war between the US and China can be averted," he added.
On Wednesday, the key indices had tumbled after further trade protectionist measures imposed by two major global economies on each other spooked investors.
The NSE Nifty50 declined by 116.60 points or 1.14 per cent to close at 10,128.40 points, while the Sensex closed at 33,019.07 points -- down 351.56 points or 1.05 per cent.