Mumbai, Oct 25 (IANS): A benchmark index for Indian equities markets shot up in the last hour of trade Tuesday to close 362 points higher after the Reserve Bank of India hinted that it would not raise key interest rates anytime soon.

While hiking the repo rate by 25 basis points in its second quarter policy review, the RBI said it may hold off another rate hike if inflation starts declining from December as it expected.

It, however, lowered growth estimates for the current fiscal to 7.6 percent.

The 30-scrip sensitive index (Sensex) of the BSE opened at 17,012.79 points and closed at 17,301.69 points (provisional), up 362.41 points or 2.14 percent from its previous close at 16,939.28 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also similarly rose to close 2.18 percent higher at 5,209.4 points.

At the broader markets, the BSE midcap index rose 0.56 percent, while the smallcap index closed flat.

Consumer durables and banking stocks fell the most, while auto and IT stocks rose.