The 30-share index, which opened in negative zone, recovered by 90.27 points, or 0.45 per cent, to trade at 20,193.62 soon after RBI announced cut in short-term

lending rate by 0.25 per cent to 7.75 per cent and Cash Reserve Ratio (CRR) by similar margin to 4 per cent.

Similarly, the National Stock Exchange Nifty index traded above 6,100 points level by rising 31.05 points, or 0.51 per cent, to 6,105.85 points.

Brokers said a cut in short-term lending rate by 0.25 per cent to 7.75 per cent after a gap of nine months, and reducing Cash Reserve Ratio (CRR) by 0.25 per cent to 4 per cent by the Reserve Bank brought cheer to the market as the move would reduce the cost of home, auto and corporate loans and improve liquidity in the market.

The upsurge was mostly led by interest-rate sensitive stocks such as banking, realty and auto.

Realty major DLF was trading higher by 1.03 per cent at Rs 269.70, while largest state-run, State Bank of India gained 1.12 per cent to trade at Rs 2,518. Private lender ICICI Bank rose by 1.34 per cent to Rs 1,206.50.