Banking shares push Indian markets higher

Optimism over new NPA policy takes banking index to new high; ICICI Bank up 9.2% in single session

The rally in the banking stocks has pushed Indian benchmarks higher on Thursday. While the Nifty closed at 9,359, up 47.9 points or 0.5 per cent, the Sensex gained 231.4 points or 0.8 per cent to close at 30,126. This is a new record high closing for Nifty. On the other hand, the Sensex is 0.8 per cent short of touching a new high. Even the broader markets echoed a similar trend with both the midcap and small indices closing 0.5 per cent and 0.36 per cent higher respectively.

The banking stocks had rallied on the back of optimism about government's