Indian shares ended higher on Thursday as the government's move to ease rules for shadow banks lifted investor sentiment, with banking, metals and finance stocks leading the gains.
The Nifty ended 0.52% higher at 11,971.80 and the Sensex was up 0.54% at 40,630.19 at the closing bell.
India's federal cabinet approved easier lending rules for shadow banks, the government said on Wednesday, to help them get more access to funds.
The Nifty metals index and state-owned banks were the top gainers, both rising over 2%.
Tata Motors was the top gainer, rising 6.9% in Nifty 50 index, while Yes Bank shares surged 5.8%.
The rupee remained strong at 70.625, after hitting its highest since Nov. 4 to 70.550 earlier in the session.
Investors also awaited the consumer price inflation and Index of Industrial Production data due later in the day.