Mumbai, Sep 21 (IANS): A benchmark index of Indian equities markets was trading 390 points higher in late afternoon session Friday, paring early day gains on profit booking.

Power, capital goods and banks were the best performers.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,411.20 points, was ruling at 18,739.44 points, 390.19 points or 2.13 percent up from its previous day's close at 18,349.25 points.

The Sensex earlier in the day had surged 464 points and touched a high of 18,866.87 on hopes of announcement of more reforms by the government. It had fallen to a low of 18,411.20 points in intra-day trade.

The BSE midcap index was up 96.10 points while the smallcap index was 95.26 points high.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange was also ruling 2.46 percent up at 5,690.95 points.

On the sectoral front, the BSE power index was up 83.49 points while capital goods index was up 421.35 points and banking index was up 497.12 points.

The major Sensex gainers were BHEL, up 6.92 percent at Rs.231.85; Tata Power, up 5.32 percent at Rs.103.90; Sterlite Inds, up 4.75 percent at Rs.103.75; SBI, up 4.65 percent at Rs.2,220.10; and ICICI Bank, up 4.44 percent at Rs.1,067.80.

There were only four Sensex losers -- TCS, down 1.04 percent at Rs.1,307.75; Infosys, down 0.59 percent at Rs.2,600; Sun Pharma, down 0.29 percent at Rs.668; and Cipla, down 0.03 percent at Rs.360.40.

Other Asian markets closed higher. Japan's Nikkei closed 0.25 percent up and Hong Kong's Hang Seng ended 0.70 percent higher. Shanghai's composite index also went 0.09 percent up.

The European markets too opened in the green. France's CAC was up 0.59 percent, while Germany's DAX rose 0.21 percent. Britain's FTSE 100 was trading 0.29 percent higher.