Reuters Market Eye - The BSE Sensex is up 0.35 percent while the broader Nifty is up 0.46 percent. The Nifty touched its highest intraday level since November 2010 of 6187.30 earlier in the session.
Continued hopes for rate cuts are driving the rally: ICICI Bank Ltd gains 2.25 percent, Bank of Baroda is up 2.02 percent and State Bank of India is up 1.83 percent.
Oil India Ltd gains as much as 3.4 percent after MSCI included company in its India and Emerging Markets indexes.
Other additions to the MSCI India index also gain with Apollo Hospitals up 4.49 percent, Wockhardt Ltd up 3.22 percent and GlaxoSmithKline Consumer Healthcare up 3.96 percent.
However, Tata Consultancy Services Ltd falls 1.33 percent and Infosys Ltd is down 0.75 percent as investors sell to short cover bank positions.
(Reporting by Himank Sharma)