Oct. 29--MUMBAI -- India's benchmark index, Sensex, advanced to its highest level since November 2010 on Tuesday. The index added over 350 points after the Reserve Bank of India (RBI) raised its key lending rate by a quarter percentage point and further eased emergency measures that were imposed in July to support the rupee, in line with market expectations.
The 30-share Sensex closed 1.74%, or 358.73 points, higher at 20,929.01 points, its highest level since 9 November, 2010. The National Stock Exchange's broader 50-share index, the Nifty, ended up 1.96%, or 119.80 points, at 6,220.90 points.
The S&P BSE Bankex index rose 4.35% to be the biggest gainer among sectoral indices.
The repo rate, at which the central bank lends short-term funds to commercial banks, was increased to 7.75%, and the Marginal Standing Facility, RBI's emergency borrowing window for banks, was cut to 8.75%.
The gainers included Maruti Suzuki India Ltd that rose 8.19% to Rs.1,636.90 and ICICI Bank Ltd that added 6% to Rs.1,075.45.
Tata Consultancy Services Ltd (TCS) shares gained 0.34% to Rs.2,070.30, while Infosys Ltd climbed 0.19% to Rs.3,330.30.
Shares of Ranbaxy Laboratories Ltd fell 0.82% to Rs.385.65 ahead of the company's earnings. Ranbaxy Laboratories is expected to report its second quarter net profit at Rs.149 crore, according to the median of 28 analysts' estimates in a Bloomberg survey.
NTPC Ltd shares gained 1.21% to Rs.145.90 after the company announced results for the September quarter.
Rajhkumar K Shaaw from Bloomberg contributed to this story.