The Bombay Stock Exchange Sensex rose 457.41 points to close at 26,694.28 and the National Stock Exchange Nifty ended 144.80 points higher at 8,246.85 as stock markets on Thursday responded positively to strong global cues and the scope for the Reserve Bank of India to cut key interest rates in the near future, NDTV reported.

Tata Steel was among the top gainers on the Nifty, rising by 4.89% to close at RS 432.05. Companies such as ITC, ONGC, Hero MotoCorp and Yes Bank were also among the best performers, gaining between 2%-4% on the markets. The rupee also traded higher at 67.34 against the United States dollar.

Investors also made purchases in anticipation of the European Central Bank’s interest rate decision, which is due later on Thursday. The central bank is expected to extend its stimulus beyond March 2017, especially following the Italian referendum on Sunday, reported CNBC Moneycontrol. Earlier this week, the euro fell to a 20-month low after Italian Prime Minister Matteo Renzi resigned.

Markets opened positively on Thursday morning, PTI reported. The BSE’s sectoral indices traded higher during the day, led by metal, auto, PSU and capital goods. Asian markets also performed well, with Hong Kong’s Hang Seng also rising by 0.58% and Japan’s Nikkei gaining 0.82%.

On Wednesday, the Sensex dropped by 155.89 points following the Reserve Bank of India’s announcement to leave its key repo rate unchanged. However, the Macqaurie Group in a note said there was scope for future rate cuts as the Monetary Policy Committee was still observing economic factors.