The 30-share index, which had gained almost 400 points in opening trade, made further headway to quote 577.73 points, or 1.75%, higher at 33,596.80 at closing.
The Sensex was down by 351.56 points or 1.05 per cent at the Wednesday's closing.
HDFC Bank's chief economist Abheek Barua, however, feels that it was "an unexpectedly dovish policy with the RBI highlighting inflation risks (oil, procurement prices, HRA for government employees) but at the same time revising their forecasts downward". This is the benchmark's biggest fall since March 23, when it had lost 409.73 points.
A string of positive domestic cues, including forecast of a normal monsoon and encouraging services sector PMI data, added to the buying momentum, brokers said.
Closer home, benchmark indexes Sensex and the Nifty gave up early gains to end down more than 1 percent on Wednesday amid persisting worries about global trade war.
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The conviction was handed down by Judge Sergio Moro, who is presiding over cases involving the mammoth "Car Wash" investigation. The conviction was upheld by an appeals court in January.
Stocks plunge as China hits United States goods with tariffs
Health insurer Humana jumped 4.9 percent on continued reports Walmart might buy the company or announce a new partnership with it. Amazon's share price has plummeted since Trump began attacking the internet giant on Twitter over its impact on the U.S.
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Hargreaves Lansdown senior analyst Laith Khalaf added that uncertainty around Comcast's potential offer had created a market for Sky shares.
The market breadth was negative with 1,444 shares declining ed nd 1,190 shares rising on the BSE.
In the morning Nifty 50 opened 131.30 points up at 10,259.70 and the Sensex opened 400 points up at 33,420. The reverse repo rate, at which it borrows from banks and absorbs excess liquidity, will remain at 5.75%.
The broader NSE Nifty inched up 6.45 points, or 0.06 percent, to 10,331.60.
SBI (-1.6%), Vedanta (-1.6%), Infosys (-1%), Tata Motors (-1.3%) and L&T (-1.3%) were the top losers in today's trade. In the Asian region, Japan's Nikkei ended 1.53 per cent higher, while Singapore gained 1.97 per cent. Hong Kong and Shanghai markets were shut today for a public holiday.
China on Wednesday chose to impose additional tariffs of 25 per cent on 106 USA goods, including soybeans, autos, some types of aircraft and corn products, in retaliation against the U.S. move to target 1,300 Chinese exports for higher tariffs.
