The BSE Sensex rose 1 percent early on Friday, tracking firm Asian markets that were boosted by a relatively stable euro, and ahead of the RBI's policy.
State-run explorer ONGC rose 6 percent after a source told Reuters its proposed share sale, valued at $2.5 billion has been deferred due to bad market conditions.
State-run oil firms Hindustan Petroleum Corp Ltd, Bharat Petroleum Corp Ltd and Indian Oil Corp were up between 2-3 percent, after announcing a petrol price increase of nearly 5 percent from Friday.
At 9:17 a.m. (0347 GMT), the 30-share BSE index was up 0.88 percent at 17,020.90 points, after rising more than 1 percent, with 22 of its components rising.
The broader 50-share NSE index was up 0.7 percent at 5,110.15 points.