The BSE Sensex surged 1.2% on Thursday, extending gains into a fifth successive session, backed by strong world markets and expectations the administration would focus on ensuring growth.

Financial stocks including private-sector lenders ICICI Bank and HDFC Bank headed the gaining chart on signs the easy economic position would continue to improve consumer spending.

India's main economic concern was lifting growth rather than inflation, Finance Secretary Ashok Chawla said on Wednesday, adding he saw no need for RBI to alter policy.

Market traders said this suggested interest rates would not climb rapidly and helped boost overall reaction.

At 11:24 a. m., the 30-share BSE index was up 1.23 percent at 16,383.37, while the 50-share NSE index was up 1.14 percent at 4,869.35.

While commenting on the stock market trends for the day, leading brokerage house Sharekhan stated that the market is expected to stay strong on overnight gains in the US stock markets and sturdy Asian markets during the morning session.

"The market is likely to stay firm on overnight gains in the US indices and strong Asian markets in morning trades," it added.

The brokerage firm also said that the Nifty could test advanced levels around 4,850. It has strong support around 4,750-4,690.

"The Sensex on the downside may slip to 16,024 and may face resistance at 16,208," Sharekhan added.