The BSE Sensex and NSE Nifty maintained early gains quite smartly in the afternoon trade as European markets like France's CAC, Germany's DAX and Britain's FTSE opened 1.5-3% higher after European Union, at its summit, reaffirmed its commitment to use its bailout funds flexibly.
Indian equities were trading at two-month high - The BSE benchmark climbed 369.85 points or 2.18% to 17,360.61 and the NSE benchmark rose 112 points to 5,261.15.
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In an interview to CNBC-TV18, Regan F Homavazir of Darashaw says, the Nifty is likely to head towards 5,365. Now to get on to any significant downside, you will have to break the psychological level of 5,000. In the event the 5,000 level does not break, we will see significant upsides, he adds.
Country's largest lenders State Bank of India, ICICI Bank and HDFC Bank climbed 2-3.7%. Index heavyweight and cigarette major ITC was up 3%.