The benchmark indices continued to trade flat after the Reserve Bank of India (RBI) kept the repurchase (repo) rate unchanged and reduced the Statutory Liquidity Ratio (SLR) to 20% in its second bi-monthly monetary policy for financial year 2017-18.
At 2:57 pm, the S&P BSE Sensex was trading at 31,259, up 69 points, while the broader Nifty50 was ruling at 9,655, up 18 points.
In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices added 0.2% and 0.5%, respectively.
Stocks of the rate-sensitive sectors such as banking, realty and auto extended gains after policy outcome.
The Nifty Realty index (up 0.7%) was the leading sectoral gainer. Indiabulls Real Estate, Sobha and HDIL gained the most on the index.
The Nifty Realty index (up 0.7%) was the leading sectoral gainer. Indiabulls Real Estate, Sobha and HDIL gained the most on the index.
The Nifty Bank rose 0.4%, led by gains in ICICI Bank, Bank of Baroda, PNB and State Bank of India, which gained in the range of 3-5%.
The Nifty Auto index was trading 0.5% higher, with Bharat Forge, M&M and Eicher Motors gaining up to 2%.
IT stocks hogged the limelight. The Nifty IT index (down 2.5%) was the lone sectoral loser. TCS, Tech Mahindra, HCL Tech and Wipro were the top losers on Nifty and shed up to 3% on the NSE.
IT stocks hogged the limelight. The Nifty IT index (down 2.5%) was the lone sectoral loser. TCS, Tech Mahindra, HCL Tech and Wipro were the top losers on Nifty and shed up to 3% on the NSE.
Overseas, European stocks were trading mixed as investors remained cautious ahead of Thursday's UK election and the European Central Bank's policy decision.
The pan-European Stoxx 600 was 0.12 percent lower, while Britain's FTSE 100 and France's CAC 40 added 0.2% each.