India's main sensex index rose 1.5 percent to its highest close in more than 15 months on Tuesday in anticipation of stronger quarterly earnings and hopes for a pickup in consumer spending.
Financial issues led by State Bank of India, the country's largest lender, firmed as advance taxes paid by them for the September quarter were sharply higher than a year ago,indicating robust profit rise.
Banks were also helped by hopes the central bank will relax accounting rules for their government bond holdings, a move that will lower provisioning for notional mark-to-market losses, traders said.
"Some good advance tax numbers contributed to the rally today. Whatever we have seen so far is good, and expect other figures to be robust as well," said Neeraj Dewan, director of Quantum Securities.
The 30-share BSE index .BSESN rose 1.48 percent, or 240.26 points, to 16,454.45,its highest close since late May 2008. All but three of its constituents gained.
Financial issues led by State Bank of India, the country's largest lender, firmed as advance taxes paid by them for the September quarter were sharply higher than a year ago,indicating robust profit rise.
Banks were also helped by hopes the central bank will relax accounting rules for their government bond holdings, a move that will lower provisioning for notional mark-to-market losses, traders said.
"Some good advance tax numbers contributed to the rally today. Whatever we have seen so far is good, and expect other figures to be robust as well," said Neeraj Dewan, director of Quantum Securities.
The 30-share BSE index .BSESN rose 1.48 percent, or 240.26 points, to 16,454.45,its highest close since late May 2008. All but three of its constituents gained.