Benchmark indices were trading higher, ahead of the RBI's Monetary Policy due later today. This would be the first policy after demonetization and it would be interesting to see what the RBI does, especially to boost consumption.
The Sensex was trading with gains of 46 points, while the Nifty was up 17 points in trade. Banking stocks were marginally higher ahead of the credit policy.
Among the gainers were most of the PSU banking stocks like State Bank of India and Punjab National Bank.
Private sector banking major ICICI Bank also gained ground, following reports of fund raising plans. Among the Nifty stocks Aurobindo Pharma and Grasim lost ground.
However, the biggest loser was Sun Pharma, which shed as much as 3 per cent in trade.
Other rate sensitive sector, the real estate sector was also seeing good buying support.
Among the gainers from the space were DLF and Unitech.
Meanwhile, the rupee continued to gain ground and was trading at 67.85, up 5 paise over Tuesday's close.