Sensex Soars 390 Points; Nifty Nears 10900

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Indian shares rose sharply to reach fresh record highs on Thursday, with banks leading the surge amid reports that the government is considering a proposal to permit 100 percent FDI in private banks.

Encouraging data on direct tax collection and bank credit growth, the Centre's commitment to fiscal consolidation and record closing highs on Wall Street overnight also boosted investor sentiment.

The benchmark BSE Sensex was up 390 points or 1.11 percent at 35,471 in early trade while the broader Nifty index was up 94 points or 0.87 percent at 10,882.

ICICI Bank, Axis Bank, PNB, HDFC Bank and Yes Bank climbed 2-3 percent.

State Bank of India rallied 2 percent. The bank received board approval to raise Rs 20,000 crore via bonds for financing affordable housing and infrastructure projects.

MindTree soared almost 9 percent after reporting better- than- estimated numbers for the third quarter ended December.

Adani Enterprises rose about 1 percent, Adani Ports gained half a percent and Bharti Airtel edged up 0.2 percent ahead of their quarterly results due today.

PNB Housing Finance advanced 1.6 percent on fund raising reports.

FMCG major Hindustan Unilever added 1 percent as it reported a 28 percent increase in Q3 net profit, signaling recovery in consumer demand.

Tata Consultancy Services was little changed after expanding its strategic partnership with the American audio equipment maker Shure.

Rivals Infosys and Wipro edged lower after recent sharp gains.

Bharti Infratel lost over 2 percent after its quarterly profit fell 6 percent.