Mumbai: Investors shrugged off RBI's yet another hike in lending rate to tame inflation and ended the Samvat year 2067 on Tuesday on a cheerful note, with the BSE Sensex shooting up 316 points to nearly 3-month high of 17,254.86. The central bank hinted at a pause in further rate hike which, analysts said, provided some relief to investors. Overall, the stock market was highly volatile and global trends mixed. The Reserve Bank raised its lending rates by 25 basis points -- 13th hike since March, 2010 -- and lowered the GDP growth projection to 7.6 percent for this fiscal. RBI's repo rate (at which it lends money to banks) and reverse-repo rate (at which it borrows) are now 8.5 percent 7.5 percent. The move will make all loans, including home and auto, costly and crimp corporate margins but analysts said the hike was factored in by some market players. The BSE 30-share barometer opened firm, following strong Asian cues, but fell back in the negative terrain to a low of 16,900.26 -- initial knee jerk reaction to rate hike. However, frenzied short-coverings on the last day of settlement in the October derivative contracts and a hint by RBI that it may pause further hike improved market sentiment. The Sensex bounced back and settled at nearly 3-month high of 17,254.86, up 315.58 points or 1.86 percent. The NSE index Nifty rose 93.25 points to 5,191.60, after moving between 5,085.55 and 5,211 points. Although Samvat year 2067 closed with buoyant mood, the Sensex has lost almost 3,640 points or 17.41 percent since last Diwali. .