BSE Sensex gains over 300 points; banks rise

Reuters Market Eye - The BSE Sensex gains over 1.5 percent, tracking higher Asian peers, encouraged both by the prospect of extended stimulus in the United States and real economic reform in China.

The Nifty gains 1.6 percent.

Bank stocks gain with bond yields on watch ahead of the Reserve Bank of India's 80 billion rupees bond purchases later in the day.

HDFC Bank is up 2.5 percent, while ICICI Bank gains 2.4 percent. Among state-owned banks, State Bank of India is up 1 percent, while Bank of India surges 4 percent.

(Reporting by Abhishek Vishnoi)