The BSE Sensex opened with a big bang ahead of RBI's announcement of its policy decision later on Tuesday amid firm Asian cues. The Sensex surged by 159 points as interest-sensitive stocks took the centre-stage.
As per the stock market reports, the NSE Nifty also witnessed a big surge as it gained by 34.30 points to reach 8,772.40.
The rupee gained more against the dollar, buoying the overall mood. The 30-share index rose 159.36 points, or 0.56 per cent, to 28,402.65, with sectoral indices led by auto, realty, banking, oil & gas and power trading in the positive zone with a gain of up to 0.74 per cent.
The gauge had rallied 415.76 points in the previous two sessions.
Sentiment remained upbeat as investors went about building fresh bets in anticipation of a rate cut. The credit policy review will be the first under new RBI Governor Urjit Patel with assistance from the newly constituted monetary policy committee (MPC).
Major gainers on the indices were ONGC, GAIL, Hero MotoCorp, Adani Ports, RIL, Cipla and Tata Motors.
Hong Kong's Hang Seng was up 0.04 per cent while Japan's Nikkei went up 0.88 per cent. Chinese markets are closed for all the week for the National Day holiday. The US Dow Jones Industrial Average, however, ended 0.30 per cent lower in Monday's trade.