Indian markets gained further momentum in the post noon deals on Tuesday post RBI policy. At 2.09 p.m., the Sensex was trading up 408.92 points or 1.60% at 26,025.76. Meanwhile, the Nifty was trading higher by 121.55 points or 1.62% at 7,921.90.

The Reserve Bank of India (RBI) announced on Tuesday reduction in key interest rates in the fourth bi-monthly monetary policy review. Repo and reverse repo rate reduced by 50 basis points, which is higher than expected 25 basis points cut.

Now revised repo and reverse repo rate stood at 6.75% and 5.75% respectively compared with 7.25% and 6.25% earlier. On the other hand, the central bank has kept cash reserve ratio (CRR) and statutory liquidity ratio (SLR) unchanged at 4% and 21.5% respectively

Major gainers in the 30-share index were Maruti Suzuki India (4.27%), Housing Development Finance Corporation (4.24%), Mahindra & Mahindra (3.70%), Bharat Heavy Electricals (2.41%), State Bank Of India (2.32%), and Tata Motors (2.31%).

On the other hand, Vedanta (4.44%), Tata Steel (2.39%), Hindalco Industries (2.12%), Dr Reddy'S Laboratories (1.98%), Bharti Airtel (0.92%), and Wipro (0.59%) were the biggest losers in the Sensex.

Market breadth was negative with 1,242 advances against 1,048 declines.