The Reserve Bank of India Governor Shaktikanta Das said real GDP growth is projected at 6.5% for FY24, — Q1 at 8% , Q2 at 6.5%, Q3 at 6% and Q4 at 5.7%.

Meanwhile, the central bank has cut inflation aim to 5.1% from 5.2% forecast in April policy.

Following the RBI announcement, the Nifty Bank index was up 0.36% to 44,436.55 while the benchmark Nifty 50 index was up 0.23% to 18,769.60.

Federal Bank (up 0.87%), AU Small Finance Bank (up 0.87%), HDFC Bank (up 0.86%), Indusind Bank (up 0.74%), SBI (up 0.67%), ICICI Bank (up 0.64%), Bank OF Baroda (up 0.56%), PNB (up 0.29%), Bandhan Bank (up 0.19%) and IDFC First Bank (up 0.07%) surged.

In the bond market, the yield on India's 10-year benchmark federal paper rose to 6.9957% compared with 6.98% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.5775, compared with its close of 82.52 during the previous trading session.