Mumbai, Despite a status quo in key lending rates, the Indian equity indices made healthy gains on Thursday.

The gains came on the back of the Reserve Bank's positive outlook and accommodative stance in its monetary policy decision.

The equity market opened gap up and remained positive for most part of the session.

In terms of global indices, major Asian markets closed on a mixed note, while European indices like the FTSE, CAC and DAX have ended lower.

Sector-wise, the top gainers were the BSE IT, FMCG, CD and Metal indices, whereas BSE Telecom, Capital Goods and Power indices lost ground.

The Nifty50 on the National Stock Exchange closed at 11,200.15, higher by 98.50 points or 0.89 per cent from its previous close. Similarly, the S&P BSE Sensex closed at 38,025.45, gaining 362.12 points or 0.96 per cent from its previous close of 37,663.33. It opened at 37,946.80 points and touched an intra-day high of 38,221.40 and a low of 37,755.10.

"Technically, with the Nifty remaining in uptrend after a volatile session on the back of the RBI monetary policy event, we expect the Nifty to move higher in the coming sessions," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"The uptrend could accelerate once the immediate highs of 11,257 are cleared. Crucial supports to watch for any trend reversal are at 11,064."

Jasani also pointed out that banking stocks reacted positively to the MPC outcome despite no rate cut as the feared extension of moratorium has not happened and they will be spared of the requirement of high provisions if by September 30, the new committee's recommendations are implemented.

"The overall market is also excited by the prudent measures implemented. However, the markets lack triggers and or flows to take it higher and hence, may keep running into resistances," Jasani said.

According to Vinod Nair, Head of Research at Geojit Financial Services: "Indian benchmark indices came off highs but still closed out a volatile day with gains, following RBI commentary regarding interest rate outlook."

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "The market might continue its positive movement in the near term, with more stock specific action as the earnings season progresses. Investors would now be awaiting announcement of US stimulus which could bring cheer to the market."

"However we find the risk-reward unattractive at the current levels and we would advise investors to remain defensive in their portfolio approach. Traders, on the other hand, are advised to stay cautious and keep booking profit at regular intervals."

On Thursday, the Reserve Bank retained its key short-term lending rates, but maintained its growth-oriented accommodative stance. Accordingly, the Monetary Policy Committee of the central bank maintained the repo rate or short-term lending rate for commercial banks, at 4 per cent. Likewise, the reverse repo rate stands unchanged at 3.35 per cent.