Sensex gains banks and airline stocks lead

SENSEX-GAINS-BANKS-AND-AIRLINE-STOCKS-LEAD:Sensex gains banks and airline stocks lead

 

Reuters Market Eye - The Sensex and Nifty hit their highest intraday levels since August 23 and head to a sixth day of gains: Sensex up 0.5 percent while the Nifty is up 0.5 percent.

SpiceJet gains 5.3 percent while Jet Airways rises 2.8 percent after the Times of India newspaper reported the government is preparing measures to potentially allow foreign investment in the sector.

ICICI Bank gains 1.3 percent, while State Bank of India advances 0.8 percent on expectations the government is also gearing up to announce fiscal reforms, providing room for RBI to cut rates.

Sentiment also boosted by higher Asian shares on optimism that a German court will approve the legality of the euro zone's bailout fund later on Wednesday.

 

Investors eyeing India's industrial output data for July, due around 11 a.m.