Mumbai: Bank stocks on Thursday gained up to 4 percent following the government's move to simplify foreign investment regime that boosted investor sentiment.
Shares of Axis Bank rose by 4.14 percent, Kotak Mahindra Bank gained 4.03 percent and Yes Bank climbed 3.11 percent on BSE.
Among others, HDFC Bank was up 1.52 percent and ICICI Bank rose by 0.83 percent.
The BSE banking index ended 1.91 percent higher at 21,996.69.
"Government's approval on composite FDI cap resulting in more capital flowing into the system lifted the sentiment," said Gaurav Jain, Director at Hem Securities.
Promising a simpler foreign investment regime, the government today introduced a concept of composite cap for all kinds of overseas inflows including through FDI, FII and NRI routes -- a move that may benefit retail companies and stock exchanges among others.
Stating that the concept of composite caps has been introduced for simplification of foreign investment norms, Finance Minister Arun Jaitley said, "From now onwards, all FIIs, NRIs and other foreign investments will be clubbed.
In the broader market, the benchmark BSE Sensex ended at 28,446.12, up 247.83 points.
