Reuters Market Eye - IDFC Ltd shares gain 1.4 percent, while L&T Finance Holdings surges 4.8 percent on hopes that they are the leading contenders to receive banking licences in a process seen entering its final stretch, dealers say.
Unlisted India Post is also seen as a leading contender, according to analysts.
An advisory committee is due to give its recommendations on bank licences by this weekend to the central bank, the Business Standard newspaper reported on Tuesday, citing India's Financial Services Secretary, Rajiv Takru.
(Reporting by Abhishek Vishnoi)