Indian equity benchmarks extended gains to a third straight day on Thursday, as investors cheered the RBI's status quo on key interest rates and policy stance. Most of the rate-sensitive stocks rose after the central bank's announcements, pushing the headline indices higher.

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The RBI's dovish policy comes at a time when major central banks around the globe have begun lining up hikes to lift rates from pandemic-era levels.

Both indices finished the day 0.8 percent higher. The Sensex gained 460.1 points to end at 58,926 and the broader Nifty50 benchmark settled at 17,605.9, up 142.1 points from its previous close.

ONGC, Tata Steel, Infosys, SBI Life, HDFC Bank, Grasim and Kotak Mahindra Bank, closing between 1.6 percent and 3.6 percent higher, were among the top blue-chip gainers.

On the other hand, Maruti Suzuki, Indian Oil, Shree Cement, UltraTech, Adani Ports, Reliance Industries and Coal India -- falling between 0.3 percent and 1.7 percent -- were the worst hit among the 13 laggards in the Nifty50 pack.

Infosys, the HDFC twins, Kotak Mahindra Bank and Tata Steel were the top contributors to the gain in both Sensex and Nifty.

The Nifty Bank and Nifty Financial Services indices rose more than one percent each. The realty index rose 0.9 percent and the consumer durables gauge 0.1 percent. The Nifty Auto declined 0.1 percent.

Newly-listed Adani Wilmar continued to surge, closing with a gain of 20 percent at Rs 381.8 apiece on BSE. At this level, the stock commands a premium of 66 percent over its issue price.

"Though the market expected the RBI to moderate its policy tone, the central bank surprised with a super dovish statement by maintaining its 'accommodative' stance and its modest inflation forecast," said Vinod Nair, Head of Research at Geojit Financial Services.

Broader markets strengthened after RBI announcements, with the Nifty Midcap 100 index rising 0.3 percent for the day. Its smallcap counterpart climbed up half a percent.

From the midcap and smallcap universes, UTI AMC, Redington, Alok, Indo Count and SpiceJet -- rising 4-8 percent -- were among the top gainers. On the other hand, Quess, Dhani Ibull, Lakshmi Machine, Shilpa Medicare and Mahindra Logistics -- falling 3-10 percent -- were among the losers.

Around 270 stocks in the Nifty 500 -- NSE's broadest index -- finished the day in the green.

Solara Active Pharma Sciences tanked 20 percent to Rs 775.1 apiece, a day after the API manufacturer reported a weak set of quarterly numbers.

Global markets

All eyes were in the incoming US inflation numbers. European shares began the day on a positive note. Investors keenly awaited US consumer price data for clues on the pace of rate hikes by the Fed going forward.

The pan-European Stoxx 600 index rose as much as 0.5 percent in early deals. S&P 500 futures were down 0.2 percent, suggesting a sluggish start ahead on Wall Street.

What next?

"With the monetary policy meet behind us, the focus would shift back to fianncial results as we head into the last leg of the earnings season. Global cues will remain on participants’ radar... We reiterate our cautious stance and suggest focusing more on risk management," said Ajit Mishra, VP-Research at Religare Broking.

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