Benchmark indices extended gains to end nearly 2% higher on Wednesday after the government pledged support to keep state-owned banks in good health and the Reserve Bank of India eased rules on their core capital requirements under the upcoming Basel III norms.

The sentiment also improved after the global markets witnessed sharp rally in last few trading sessions.

FIIs have also started pouring money in Indian markets after the Finance Minister pledged to implement GAAR on taxes from April 1, 2017.

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