The markets opened on a positive note on Wednesday, ahead of RBI Governor Shaktikanta Das' meeting at 10 AM.
The 30-share BSE index jumped 266.09 points or 0.55 percent to 48,519.60 in initial deals. Similarly, the broader NSE Nifty advanced 81.45 points or 0.56 percent to 14,577.95.
ONGC was the top gainer in the Sensex pack, gaining over 2 percent, followed by NTPC, IndusInd Bank, Bharti Airtel, Titan, Axis Bank and UltraTech Cement.
On the other hand, HDFC, Nestle India and HUL were among laggards.
RBI Governor Das will make an unscheduled speech at 10 am today. Deputy governors MK Jain and MD Patra and other top RBI officials attended the meeting.
At 09:16 IST, the Sensex was up 263.50 points or 0.55% at 48517.01, and the Nifty was up 73.90 points or 0.51% at 14570.40. About 1046 shares have advanced, 209 shares declined, and 53 shares are unchanged.
ONGC, IndusInd Bank, and Titan Company were the top gainers. HDFC, Bajaj Auto were the worst-performing stocks in opening trade.
In the previous session, Sensex ended 465.01 points or 0.95 percent lower at 48,253.51, and Nifty slumped 137.65 points or 0.94 per cent to 14,496.50.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,772.37 crore on Tuesday, while domestic institutional investors (DIIs) purchased shares worth Rs 987.34 crore, according to provisional exchange data.
"RBI Governor''s announcements on Wednesday are likely to influence markets, particularly certain segments like banking. Relief to MSMEs and retail borrowers might positively impact banks which have a higher proportion of such loans. The rally in PSU banks on Tuesday may be in anticipation of this," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The market is presently caught between fear from the economic fall out of the second wave of the pandemic and hope arising from the flattening of the COVID-19 curve, he said, adding that it will take some more time for clarity to emerge on which of the two will have a higher impact on markets.
"Going by the experiences of countries that went through the second wave, like the UK, hope will triumph over fear. GDP and earnings growth in Q1 FY 22 will take a hit, but is likely to recover in subsequent quarters,” he noted.
Elsewhere in Asia, bourses in Hong Kong were trading flat in mid-session deals, while Seoul, Shanghai and Tokyo were closed for holidays.
Equities on Wall Street ended on a negative note in overnight trade.
Meanwhile, international oil benchmark Brent crude was trading 2.61 percent higher at $69.32 per barrel.