Reuters Market Eye - The BSE Sensex gains 0.5 percent, while the broader Nifty is up 1.1 percent.
Lenders lead gains after the Reserve Bank of India on Tuesday issued guidelines under which banks would be exempted from reserve requirements when raising long-term bonds for infrastructure.
Shares of IDFC Ltd up 8.6 percent, as the Indian infrastructure lender is seen as one of the main beneficiaries.
Among lenders, State Bank of India gains 2.2 percent, ICICI Bank rises 4.5 percent, while Axis Bank adds 3.2 percent.
(Reporting by Indulal PM)