Mumbai: The BSE Sensex and the Nifty surged on Thursday led by gains in banking stocks after the US Federal Reserve stunned markets and decided not to taper its asset-buying programme. The BSE Sensex gained 3.5 per cent while the Nifty was up 3.77 at 1510 IST.
The NSE bank index gained 7.2 per cent on hopes that the RBI in its policy review on Friday, may ease some of emergency cash tightening steps it had initiated in mid-July.
Among large-cap banks, ICICI Bank Ltd rose 6.5 per cent, HDFC Bank Ltd was up 5.7 per cent while the midcap Yes Bank Ltd surged 23.2 per cent.
The broader Nifty rose as much as 4.1 per cent, marking its highest level since May 22, 2013, while the benchmark BSE Sensex rose as much as 3.9 per cent, marking its highest level since November 11, 2010.