Reuters Market Eye - Kotak Mahindra Bank (KTKM.NS) surges as much as 7.6 pct to record high of 1,159.15 rupees.
Heads towards biggest single-day gain since September 2013.
ING Vysya Bank (VYSA.NS) soars as much as 7.4 pct to record high of 813.50 rupees.
Kotak is close to acquiring ING Vysya bank, ET Now business news channel reported on Wednesday.
Acquisition will be good fit for Kotak - Nomura.
Kotak says no decision has been made in relation to any merger.
Reporting by Abhishek Vishnoi