Indian shares rose on Wednesday, snapping two days of losses and approaching a key psychological level of 9,000, after stronger-than-expected economic growth eased worries about the impact of the government's demagnetisation drive. The broader NSE index closed up 0.75 percent at 8,945.8, not too far from the key level of 9,000.
The benchmark BSE index rose 0.84 percent to end at 28,984.49.
India's annual gross domestic product (GDP) grew 7 percent in the October-December quarter, slower than 7.4 percent in the previous quarter but much faster than the 6.4 percent expansion forecast in a Reuters poll.
The market sentiment was also underpinned by a private survey on Wednesday that showed Indian factory activity expanded for a second straight month in February.
"The Indian market has been generally confident for a while," said Dipen Shah, senior vice president and head of private client group research at Kotak Securities.
Financial stocks recovered, with the Nifty Financial Services Index rising as much as 1.2 percent, after declining for four straight sessions. Axis Bank was up 2.5 percent, Bajaj Holdings and Investment rose 2 percent and ICICI Bank gained 1.3 percent.
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