BSE Sensex jumps nearly 200 points; banks lead

Reuters Market Eye - The BSE Sensex and the Nifty gain nearly 1 percent. Bank shares gain 2.5 percent adding to Monday's 1.2 percent rise after the finance minister announced a fiscal deficit target of 4.1 percent of the GDP in 2014/2015, its lowest since 2007/08, and a gross market borrowing of 5.97 trillion rupees, below market expectations.

HDFC Bank rises 1.9 percent while ICICI Bank gains 3.14 percent.

Shares also get a boost after overseas investors bought Indian stock worth 5.22 billion rupees on Monday.

Also, pharmaceutical shares gain on defensive buying. Ranbaxy Laboratories is up 1.6 percent while Lupin gains 1.2 percent.

 

(Reporting by Abhishek Vishnoi)