Sensex tops 35,000 as banks rally after govt cuts borrowings to Rs 200 bn

So far this financial year, FPIs pumped in over Rs 20 billion into domestic stocks, helping Sensex climb 3%

A sharp rally in banking stocks saw the benchmark Sensex top the 35,000-mark for the first time, while the 50-share Nifty inched towards 10,800 on Wednesday. Benchmark indices gained close to one per cent as investor sentiment got a boost amid cooling of bond yields after the government announced a cut in additional market borrowing for the current financial year.

The BSE Sensex gained 0.89 per cent, or 311 points, to 35,081.82, while Nifty ended 0.82 per cent, or 88 points higher at 10,788.55.

Axis Bank gained 4.7 per cent, most among Sensex components, followed by State Bank of India (SBI), which gained