The 30-share index, which had lost nearly 21 points in yesterday’s trade, gained 239.62 points, or 1.20 per cent, to trade at 20,134.72 with all sectoral indices trading in the positive zone rising up to 3.59 per cent.
The wide-based National Stock Exchange index Nifty rose by 63.35 points, or 1.07 per cent, to trade at 5,969.50.
Brokers said sentiments turned buoyant after RBI yesterday cut the marginal standing facility (MSF) rate, at which it lends emergency funds to banks, by 0.5 per cent to 9 per cent with an aim to improve liquidity and boost economic activities.
The banking index gained the most by rising 3.59 per cent to 11,887.47 with all the 13 constituents, led by Yes Bank and SBI, rising up to 8.10 per cent.
In the Asian region, Hong Kong’s Hang Seng index rose by 0.34 per cent, while Japan’s Nikkei was down marginally by 0.07 per cent in early trade.
The US Dow Jones Industrial Average ended 0.90 per cent lower yesterday.