Sensex hits record closing high of 35,260 over bank FDI hopes; lenders gain

HDFC Bank m-cap touches Rs 5 trillion

Indian markets on Thursday recorded new highs with the Sensex consolidating above 35,000 and the 50-share Nifty closing above 10,000. 

Banking shares led the gains for a second day, this time on hopes that the government would raise the foreign direct investment (FDI) ceiling for the sector to 100 per cent. A day earlier, they had jumped after the Centre announced a cut in additional borrowing to Rs 200 billion. 

After rallying as much as 425 points, the Sensex settled 178.5 points, or 0.5 per cent, higher at 35,260 and the Nifty closed at 10,817, up 28.5 points, or 0.26