At 12:12 pm, the Sensex traded 117.05 points - or 0.32 per cent - higher at 36,807.55, while the Nifty was up 30.50 points - or 0.28 per cent - at 10,886.00.

Top percentage gainers on the 50-scrip index at the time were HCL Tech, Bharti Infratel, Tata Motors, Bharti Airtel, JSW Steel, Hindalco and Infosys, trading between 1.65 per cent and 4.17 per cent higher. HDFC Bank, Infosys, TCS and HCL Tech contributed the most to the upmove in Sensex.

Market breadth was neutral, with 964 stocks on the BSE trading higher and 1,085 struggling with losses. On the NSE, 815 stocks advanced while 852 declined.

Information technology stocks jumped, with the sectoral Nifty IT index rising as much as 1.27 per cent during the session. HCL Tech was the biggest percentage gainer on the Sensex and Nifty in afternoon after its net profit declined 13 per cent to Rs 2,230 crore.

In its third bi-monthly statement of 2019-20, the RBI lowered its gross domestic product (GDP) growth projection for 2019-20 to 6.9 per cent from 7 per cent, and cut the repo rate to a nine-year low of 5.40 per cent while maintaining its accommodative stance of policy. An accommodative stance means any increases in the key rates are off the table.

The revision in the RBI's GDP growth projection fuelled concerns about the economic slowdown.

“The cut in the policy rate was widely expected however the statement failed to give any guidance on future moves… Market participants believe growth outcome to be lower than Monetary Policy Committee's projection,” said Kunal Shah, CFA, fund manager-debt, Kotak Mahindra Life Insurance.

Mahindra and Mahindra (M&M) said on Wednesday it saw a "huge danger" of job losses in the ailing domestic auto sector, as it sought government intervention including tax reductions to revive demand. Mahindra & Mahindra shares traded higher, up 0.98 per cent at one point.

On the other hand, Cipla shares fell as much as 4.77 per cent, a day after the pharmaceuticals major reported its earnings for the April-June period.