NSE's Nifty 50 and BSE's Sensex recorded gains for the seventh straight session on Wednesday supported by a decline in oil prices and RBI's announcement of additional OMO (open market operation) purchases. The fall in crude prices to their 16-month low also helped rupee and bond prices to gain.

Nifty 50 closed 58.60 points or 0.54 percent higher at 10,967.30 and Sensex gained 0.38 percent or 137.25 points at closing time.

Gains in PSU bank stocks helped put off any losses from IT stocks. All the sectoral indices on BSE were greens except for IT. BSE's midcap index rose 1.5 percent while smallcap index closed 1.09 percent higher.

RBI, on Wednesday, announced that it would be purchasing more government bonds than earlier planned. It will conduct two OMO purchases worth Rs 15,000 crore each in the month of December to amount the total injection of liquidity in the financial sector to Rs 50,000 crore. It had earlier planned for a Rs 40,000 crore OMO purchase. Continued buying from Foreign Institutional Investors also helped cheer the markets. They have made purchases worth $677 million in equity and debt in December, so far.