Equity benchmark Sensex gained momentum and surged over 400 points in morning trade on Thursday after the Reserve Bank of India kept benchmark lending rate unchanged and said it will continue with the accommodative stance.

After opening on a positive note, the BSE gauge went up and was trading at 58,885.61 points, registering a gain of 419.64 points or 0.72 per cent after the RBI MPC decision.

In tandem, the Nifty advanced 124.75 points or 0.71 per cent to 17,588.55 in initial deals.

HDFC was the top gainer in the Sensex pack, climbing nearly 2 per cent, followed by PowerGrid, HDFC Bank, Kotak Bank, Tata Steel, Infosys, SBI and Axis Bank.

On the other hand, Maruti, Bharti Airtel and Asian Paints were among the losers.

Reserve Bank of India (RBI) on Thursday kept the benchmark interest rate unchanged at 4 per cent and decided to continue with its accommodative stance in the backdrop of an elevated level of inflation.

This is the tenth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo.

RBI retained its growth projection at 9.2 per cent and inflation at 5.3 per cent for the current financial year.

In the previous session, the 30-share index surged 657.39 points or 1.14 per cent to finish at 58,465.97. Similarly, the NSE Nifty jumped 197.05 points or 1.14 per cent to 17,463.80.

Meanwhile, international oil benchmark Brent crude rose 0.02 per cent to USD 91.57 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth Rs 892.64 crore on Wednesday, according to stock exchange data.