After commencing higher, the 30-share index was up 179.77 points, or 0.73 per cent, to trade at 24,864.62 in afternoon trade.
Similarly, the broad-based National Stock Exchange Nifty regained 7,400 mark by rising 54.50 points, or 0.74 per cent, to 7,417.00.
Brokers said the RBI's decision to keep key policy rates unchanged and cut the SLR by 0.50 per cent to 22.50 per cent buoyed the sentiment, triggering buying by funds and retail investors.
The central bank, in its second bi-monthly monetary policy statement for 2014-15, unlocked about Rs 40,000 crore of banking fund by reducing SLR by 0.5 per cent to 22.5 per cent and left the short-term lending rate or repo rate unchanged at 8 per cent, and the cash reserve ratio for banks at 4 per cent to keep inflation under check.
The BSE banking index rose 0.39 per cent to 17,578.00 with stocks of SBI surging 0.34 per cent, Axis Bank 0.78 per cent and Yes Bank 0.05 per cent.