The Sensex ended 157.34 points up at 35,807.28 on Thursday while the Nifty 50 closed at 10,779.80 led by gains in heavyweights Infosys and Reliance and on global cues.
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Oil prices fell over 1% after rebounding 8% in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy.
Meanwhile, the RBI has set up a six member panel to look into the use of its surpluses and reserves. It will suggest how the bank should handle its reserves and whether it can transfer its surplus to the government.
This committee which will review the existing economic capital framework (ECF) will be chaired by Dr Bimal Jalan, the former Governor of the central bank while former RBI deputy governor Rakesh Mohan will be the vice chairman.
Other members are RBI central board directors Bharat Doshi and Sudhir Mankad; deputy governor N.S. Vishwanathan; and economic affairs secretary Subhash Chandra Garg. The panel will submit its report within 90 days of its first meeting.