The benchmark Sensex surged 360.77 points in the morning session on Wednesday as investors reacted favourably to comments made by the U.S. Federal Reserve about inflation and ahead of the RBI's announcement of its monetary policy.

On Wednesday, the Asian markets showed a variety of movements.

The broad NSE Nifty rose 121.60 points 0.69% to 17,843.10 points in early trade, while the 30-share BSE Sensex increased 360.77 points or 0.60% to 60,646.81 points.

With a gain of 2.43%, Ultra Cement led the list of Sensex gainers, followed by Bajaj Finance, TCS, Reliance Industries, Infosys, and HCL Tech. The laggards, on the other side, included Bharti Airtel, Sun Pharma, NTPC, PowerGrid, Maruti, and HUL.

The repo rate may be increased by 25 basis points when the Reserve Bank of India (RBI) announces its monetary policy decision in the morning.

The Monetary Policy Committee (MPC), led by Shaktikanta Das, began its three-day meeting on February 6 in the midst of the rate hike frenzy that began in May of last year to combat inflation.

With retail inflation showing signs of easing and continuing below the Reserve Bank of India's upper tolerance level of 6%, as well as a projected slowdown in GDP growth in the upcoming fiscal year beginning in April, experts believe the central bank may only choose to raise the benchmark interest rate by 25 basis points.

The central bank increased the key benchmark interest rate (repo) by 35 basis points (bps) in its review of the country's monetary policy in December, following three consecutive rises of 50 bps.

The RBI has raised the short-term lending rate by 225 basis points since May of last year in an effort to rein in inflation, which is primarily the result of external causes, particularly the disruption of the global supply chain caused by the commencement of the Russia-Ukraine war.

RBI MPC raises repo-rate by 25-bps to 6.5%

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