Nifty gains 2 percent; IT, bank shares surge

MUMBAI (Reuters) - The Nifty rose as much as 2 percent on Thursday, led by gains in IT stocks on improving business outlook in key markets, while banks surged on potential gains from falling bond yields.

Tata Consultancy Services rose 3.9 percent, while Tech Mahindra gained 4.6 percent.

Axis Bank surged 5.8 percent while HDFC Bank gained 2.1 percent.

The Sensex rose 1.7 percent, while the broader Nifty gained 1.97 percent at 0847 GMT.

The October futures contract on the Nifty spiked as much as 2.87 percent earlier in the day in what multiple traders described as a "freak", or erroneous, trade.

(Reporting by Abhishek Vishnoi; Editing by Gopakumar Warrier)