New Delhi, Oct. 29 -- Indian stock markets rallied on Thursday, with the Sensex surging over 905 points and the Nifty gaining 1.05 per cent, as the US Federal Reserve's decision to keep interest rates unchanged, a marginal easing in crude oil prices and renewed institutional buying improved investor sentiment.

The Nifty 50 index closed at 22,936.75, gaining 237.90 points or 1.05 per cent, while the BSE Sensex closed at 74,151.04, rising 905.01 points or 1.24 per cent.

Vinod Nair, Head of Research at Geojit Investments, said Indian equities rallied as the Fed's rate pause, marginal easing in crude and renewed institutional buying improved risk appetite despite a challenging external backdrop.

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