The Sensex and the Nifty ended higher on Thursday after inflation eased sharply in November, and the new Reserve Bank of India governor's move to open up a dialogue with lenders boosted financial stocks.
The broader Nifty closed 0.5 percent higher at 10,791.55, while the benchmark Sensex ended 0.42 percent higher at 35,929.64.
Shares of private-sector lenders Kotak Mahindra Bank Ltd and HDFC Bank Ltd ended 2.5 percent and 0.8 percent higher, respectively.
Infosys Ltd's stock, which was the top driver on the indexes, finished 2.8 percent higher.
Meanwhile, Yes Bank Ltd's shares reversed course to close 6.4 percent down, after the lender said new chief executive officer will be appointed within the central bank's deadline of Feb. 1, without disclosing further details.
For the mid-day report, click