Banking shares led the gainers as hopes of a January rate cut gathered steam. ICICI Bank rose 0.9 percent, while State Bank of India rose 1.3 percent.

The 50-stock NSE index was up 0.8 percent as of 0553 GMT, after earlier rising to as high as 6,000.50 points, trading above that key psychological level for the first time since Jan. 7, 2011.

The benchmark 30-stock BSE index rose 0.79 percent.