Expectations for an RBI rate cut have increased following recent liquidity measures. Morgan Stanley forecasts a 25-basis-point rate cut in the upcoming February 7 policy meeting, driven by domestic growth and inflation dynamics.

The BSE Sensex gained 186.10 points or 0.25 per cent to 6,087.51. Nifty stood at 23,015.45, up 58.20 points or 0.25 per cent. The sentiment in the broader market improved with three stocks rising on fall in every single stock.

The S&P BSE Sensex added 221 points to 76,122.41, while the NSE Nifty50 gained 66.40 points to 23,023.65 as of 9:35 AM.