Reuters Market Eye - The BSE Sensex rises as much as 3 percent to its highest intraday level in over 2-1/2 years after the U.S. Federal Reserve stunned markets and decided not to taper its asset-buying programme.
The BSE Sensex is up 2.7 percent after marking its highest level since January 4, 2011. The broader Nifty is higher 3 percent after surging as much as 3.3 percent to its highest level since July 23, 2013.
The Fed said it would await evidence of stronger economic growth before adjusting the pace of its purchases, and Chairman Ben Bernanke said in a press conference that market expectations cannot dictate policy actions.
The NSE bank index gains 6.9 percent on hopes that the RBI in its policy review on Friday, may ease some of emergency cash tightening steps it had initiated in mid-July.
Among large-cap banks, ICICI bank Ltd
(Reporting by Abhishek Vishnoi)
