The BSE Sensex and Nifty are up around 0.6 percent. Banking shares recover after RBI leaves interest rates on hold on Tuesday but signals a cut in the repo rate in the January-March quarter. State Bank of India gains over 1 percent, while ICICI Bank (ICBK.NS) is up marginally.

Tata Motors (TAMO.NS) gains 1.4 percent, up for a fourth day, after stronger-than-expected November sales at Jaguar Land Rover (JLR) reduced concerns about the outlook for the key unit of the Indian auto maker.

Sun Pharmaceutical Industries (SUN.NS) gains 2.2 percent after it said on Monday Caraco Pharmaceutical Laboratories Ltd. (Caraco), its wholly-owned subsidiary, has acquired URL generic business from Takeda Pharmaceutical Company.