Reuters Market Eye - The BSE Sensex gains nearly 1 percent while the Nifty trades up around 1.2 percent amid broadly positive regional risk sentiment on hopes for more monetary easing but traders are cautious ahead of April derivatives expiry.
Asian shares edge higher supported by views that a run of weak global economic data will encourage major central banks to keep or deepen their monetary stimulus.
The RBI is likely to cut interest rates next week for a third time this year, drawing comfort from a fall in inflation as it seeks to help lift the economy from its lowest growth in a decade, according to a Reuters poll.
Jet Airways shares surged nearly 20 percent after Etihad deal. At 12:46 p.m., the stock was up around 11.44 percent. Spicejet Ltd also gained 13.4 percent.
Technology shares Tata Consultancy Ltd , Wipro Ltd and HCL Technologies Ltd down 1 to 2 percent as traders roll over short positions.
Among other gainers were banking shares on hopes for a rate cut next week with the NSE banking index up 1.4 percent.
(Reporting by Swati Bhat)