Among the 50 Nifty stocks, 27 logged gains, 22 declined and one remained unchanged.
The government needs to do much more on the front of liquidity, said Sameer Kalra.
BSE Midcap and Smallcap indices were 1 per cent up each in morning trade.
The rupee's rise against the US dollar and improved global sentiment also influenced market sentiment.
Asian shares showed signs of resilience after China reported better trade numbers.
After Market: Indiabulls Housing tanks 13%, Suzlon 7%, M&M 6%; ITC, Tata Motors, Tata Steel at 52-week lows
"The NBFC crisis is still plaguing the market, and there is a need to fix it," said Deepthi Mathews.
Sensex jumped over 120 points right after the policy announcement.
The RBI MPC will announce its third bi-monthly policy of the ongoing fiscal today.
Midcaps and smallcaps jumped up to 1.72 per cent, outperforming the Sensex.
IndusInd Bank, YES Bank, Tata Motors, Bajaj Finance and L&T were among top gainers.
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