Markets opened the day significantly higher, as all eyes were on the Reserve Bank of India press meet. It is widely expected that the RBI would provide liquidity support as well cut interest rates.
The Sensex was trading higher by 1,111 points, while the Nifty surged 382 points in trade. Banking stocks were leading the set of gainers with the RBI widely expected to cut interest rates. Bandhan Bank and IndusInd Bank were once again leading the set of gainers with both the stocks, hitting the 10 per cent upper limit.
Most of the larger banking stocks were also seeing gains, including ICICI Bank, Axis Bank and State Bank of India. Auto stocks were also trending higher on hopes that a cut in interest rates would see better demand for products through vehicle financing.
Meanwhile, most of the Asian markets continued to see significant rallies, following a third straight day of gains for the US markets. In fact, the three day gains for the US markets were as much as 20 per cent.