BSE Sensex rallies over 200 points; banking stocks rise

Reuters Market Eye - The BSE Sensex gains 1.38 percent, while the broader Nifty is up 1.47 percent in a broad-based rally after domestic institutional investors turned buyers on Thursday, ending a selling streak of at least 12 days.

DIIs bought shares worth 3.30 billion rupees on Thursday, according to the most recent available exchange and regulatory data.

A return of domestic investors - who have sold heavily this year - would potentially provide a new boost to markets given signs of waning buying appetite from foreign investors.

Hopes that state elections results on December 8 would yield a clear winner are also boosting shares.

Investors say a clear winner in general elections due next year would be a positive outcome.

Among blue-chip stocks, Sesa Sterlite gains 2.9 percent, while ICICI Bank is up 2.7 percent.

(Reporting by Abhishek Vishnoi)