The 30-share barometer in the opening trade rose by 83.23 points, or 0.26 per cent, to 31,354.51.
The central bank has, however, slashed the Statutory Liquidity Ratio (SLR) or the percentage of deposits that banks have to park in government securities, by 0.5 per cent to 20 per cent.
The 30-share index, which had lost 118.93 points in the previous session, recovered by 99.42 points, or 0.31 percent, to 31,289.98.
The market sentiment took a short-term reversal in the absence of any meaningful fresh domestic triggers and also concerns of stretched valuation.
NSE Nifty down 16.65 points or 0.17 per cent to 9,647.25, after shuttling between 9,688.70 and 9,641.50.More news: Groups of people come together to remember Jo Cox
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European stocks ended Wednesday's choppy session marginally lower even as banks turned in an impressive performance after Spain'sBanco Popular was acquired by Banco Santander.
The monetary policy committee had on Wednesday left the policy repo rate at a 6-and-a-half year low of 6.25 per cent and the reverse repo rate at 6.0 percent. Shares of GAIL, Bharti Airtel, ICICI Bank, SBI, Hero Motocorp, M&M, Bajaj Auto and Tata Steel were trading in the positive zone, with gains of up to 0.93%.
In the sectoral landscape, IT stocks bled the most, plunging almost 2 per cent to settle at 10,178, with TCS (down 3.59 per cent) being the biggest loser.
The BSE market breadth was bullish - with 1,460 advances and 1,200 declines.
This followed the RBI maintaining a "neutral" policy stance and lowering its inflation projections as it delivered a less hawkish policy statement on Wednesday, leaving key interest rates unchanged.