The Sensex gains around 250 points, while the Nifty gains around 75 points. The gains were in line with Asian shares that rebounded sharply on Tuesday, reclaiming most of the previous day's steep losses, as a globally accommodative monetary stance helped revive risk appetite.

Rate-sensitive shares lead gains on growing hopes from the RBI later this month: ICICI Bank Ltd (ICBK.NS) rise 2.74 percent, while Tata Motors (TAMO.NS) is up 3.81 percent.

Reliance Industries (RELI.NS) shares are up 2.1 percent, gaining for the second day, after Morgan Stanley upgraded the stock on expectations of an improvement in core business.

Dr Reddy Laboratories (REDY.NS) gains 1.7 percent after the launch of Zoledronic Acid injection in the United States.