All the BSE sectoral indices closed in the green, led by telecom, consumer durables, power, capital goods, auto, oil&gas and realty.
The six-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, kept the policy rate unchanged on expected lines but raised the inflation forecast for remainder of the current fiscal to 4.3-4.7 %.
The broader NSE Nifty too went past the 10,200-level.
Bank stocks, in fact, fell on Wednesday after the RBI chose to keep the repo rate unchanged in its monetary policy review.
Other gainers were Sun Pharma, HUL, Cipla, ONGC, Maruti Suzuki, HDFC Bank, Bharti Airtel, Axis Bank, ICICI Bank, HDFC Ltd and Tata Steel, gaining up to 2.21 percent. Laggards included Infratel (-1.35%), Tech Mahindra (-0.51%), NTPC (-0.50%), HPCL (-0.44%), Ambuja Cements (-0.39%).
Domestic institutional investors (DIIs) were net buyers as they bought shares worth Rs 926.68 crore yesterday while foreign portfolio investors (FPIs) offloaded equities amounting to Rs 1,075.62 crore, provisional data showed. Polls indicate a victory for the ruling Bharatiya Janata Party (BJP), but with a greatly reduced majority.
The markets opened the Thursday's session on a positive note with key benchmark indices extending intra-day gains. "There may be some recovery in the markets ahead of the earnings season and the government budget next month", he added.
The US Dow Jones Industrial Average ended 0.29% higher in Thursday's trade. It has slipped 4.7 percent from a 10-year peak hit on November 23 as investors booked profits after robust gains this year. Shanghai Composite Index, however, shed 0.52 per cent.