BENGALURU: Indian shares settled higher on Wednesday after the Reserve Bank of India delivered an expected 25 basis points rate hike, while Adani Group shares recouped losses for a second straight day.

The Nifty 50 index was up 0.85% at 17,871.70 at close, their highest in two weeks, while the S&P BSE Sensex finished 0.63% higher to 60,663.79. Both indexes snapped two straight sessions of losses.

The central bank raised the key policy repo rate in line with economists’ expectations, but surprised markets by leaving the door open to more tightening, saying core inflation remained high.

“Nifty is back in the range that it was for sometime before the Adani fiasco, and we expect a range-bound market for the next few days, said Samrat Dasgupta, chief executive officer of Esquire Capital Investment Advisors.