ICICI Bank drives Indian shares to record high

The benchmark BSE 30-share index ended 0.61 percent, or 125.76 points, up at 20,812.65, its highest ever close.

However, 18 components ended down.

The index hit a record high of 20,861.83 during trade as the ICICI talk helped it recover from early losses of 1.2 percent after it was caught in a sell-off in global markets after weak U.S. employment data heightened fears of a U.S. recession.

Sentiment has been underpinned by expectations that companies will report good December quarter earnings from later this week, as well as bullishness on India's biggest ever IPO.

"Due to the global weakness, we'll continue to see some volatility for sure, but I don't see any big correction happening as these events are there," said Dipak Acharya, a fund manager at BoB Mutual Fund.

Reliance Power Ltd, which is 50 percent owned by Reliance Energy Ltd, is looking to raise up to $3 billion in its initial public offer next week, which would be an Indian record.