Indian shares soar on industial output rise

Indian shares have surged to their highest level in more than two and a half years after new figures revealed that its industrial output jumped faster than expected.

The data showed that July's factory output was up 13.8 per cent compared with a year ago.

India's benchmark Sensex index rose 322 points to 19,122 – its highest since January 2008.

Banks led the gains as businesses are expected to borrow more as the economy grows.

Shares in State Bank of India, the country's largest lender, were up 4.3 per cent while ICICI Bank shares rose 3.5 per cent.

HDFC Bank was 1.1 per cent up.