sensex nifty
A man walks past a screen displaying news of markets update inside the Bombay Stock Exchange (BSE) building in Mumbai, February 6.Reuters

Indian shares rose in line with Asian peers on Thursday as investors clung on to hopes of a vaccine for COVID-19, while the central bank's move to improve liquidity at shadow lenders boosted financial stocks.

The Nifty rose 0.73% to 10,506.7 by 0348 GMT, while the Sensex was up 0.71% at 35,666.57.

Pfizer and Germany's BioNTech COVID-19 vaccine 

MSCI's broadest index of Asia Pacific shares outside of Japan rose 0.9%, following a strong close on Wall Street after a COVID-19 vaccine from Pfizer and Germany's BioNTech was found to be well tolerated in early-stage human trials.

On Wednesday, the Reserve Bank of India announced a government-backed fund to buy debt from shadow banks, in a move seen easing a liquidity crunch in the sector.

Bajaj Finance Ltd rose as much as 2.1% and was the top gainer on the Nifty 50. The Nifty Bank Index, which has lost more than 30% so far this year, gained 1.3%.