Mumbai (PTI): Exuding confidence in the slew of measures announced by the government and the central bank to check inflation, the stock market on Tuesday surged 362 points and was complemented by good corporate results.

However, the test for the bourses would be the US central bank's stance on federal rates, which are likely to be slashed downward as part of efforts resurrect the recession-ridden American economy.

The analysts said that the RBI's monetary policy announcements have been cheered by the market here, but the movements going forward would depend to a large extent on the US interest rate regime.

"It is a prudent policy directive, which attempts to keep economic growth momentum alive, but also keeps the global perspective in mind," Religare Enterprises CEO and MD Sunil Godhwani said.

With the US rates likely to be cut in tomorrow's FED meeting, RBI treaded the path of caution by not increasing the policy rate in India now, postponing the decision, if the situation warrants, to a later date, Godhwani added.

The Reserve Bank of India today kept all key short-term lending and borrowing rates (repo and reverse repo) and Bank Rate unchanged.

While, the central bank raised Cash Reserve Ratio by 0.25 basis points to 8.25 per cent in its Annual Monetary Policy within a fortnight of announcing a hike in CRR to suck out Rs 18,500 crore liquidity from the system.