The benchmark indices pared all the losses and traded with modest gains in the morning trade. The Nifty traded above the 16,900 level after hitting the day's low of 16,747.70 in the early trade. Banks stocks were in action following RBI hikes repo rate by 50 bps. 

At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 331.39 points or 0.59% at 56,741.35. The Nifty 50 index gained 104.35 points or 0.62% at 16,922.45. 

In the broader market, the S&P BSE Mid-Cap index shed 0.03% while the S&P BSE Small-Cap index rose 0.24%. 

The market breadth was positive. On the BSE, 1,715 shares rose and 1,301 shares fell. A total of 149 shares were unchanged. 

Foreign portfolio investors (FPIs) sold shares worth Rs 3,599.42 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,161.73 crore in the Indian equity market on 29 September, provisional data showed. 

RBI governor Shaktikanta Das announced that the Monetary Policy Committee has decided to raise the repo rate by 50 basis points to 5.9% with immediate effect. The meeting of the RBI Monetary Policy Committee (MPC) started on Wednesday (28 September), and RBI Governor Shaktikanta Das on Friday (30 September) announced that the MPC voted with 5-1 majority to increase repo rate by 50 bps to 5.9%. 

Das said that inflation continues to be at alarming high levels across jurisdictions. Economic activity in India "remains stable." It gives us confidence to deal with aggressive policies of other central banks, he added. 

FY23 CPI inflation is retained at 6.7%. FY23 real GDP growth is seen at 7% from 7.2% earlier, he said. 

The Nifty Bank index gained 0.18% to 37,715.05. The index tumbled 9.21% in seven trading sessions. 

Punjab National Bank up 2.44%,Kotak Mahindra Bank up 1.58%,Bank of Baroda up 1.37%, State Bank of India up 1.35%,HDFC Bank up 1.28%, Bandhan Bank Ltd up 0.94%, ICICI Bank Ld up 0.78%, Axis Bank up 0.68%, Federal Bank up 0.66% and IndusInd Bank up 0.59% advanced. 

Lupin rose 1.96% after the drug maker said that it has received ANDA approval for its Mirabegron extended-release tablet from the US Food and Drug Administration (USFDA). The approved abbreviated new drug application (ANDA) is generic equivalent of Myrbetriq extended-release tablets of Astellas Pharma Global Development, Inc. The pharma major said that the product will be manufactured at Lupin's facility in Nagpur, India. 

Rail Vikas Nigam (RVNL) gained 1.21% after the company said it bagged a contract for construction of 4 lane highway in Andhra Pradesh. The company has received contract for construction of 4 lane highway from Samarlakota to Achampeta Junction, from National Highways Authority of India (NHAI). The contract is a part of Kakinada port to NH - 16 connectivity in Andhra Pradesh under Bharatmala Pariyojana in EPC (engineering, procurement and construction) mode. The total awarded cost of the project is Rs 408 crore.