Indian shares rose on Monday, led by banking stocks on hopes that the government may offer support and infuse some capital into the sector, with gains in global markets also aiding investor sentiment.
The broader NSE Nifty 50 index rose 1.6 per cent to 11,227.55 and the S&P BSE Sensex climbed 1.6 per cent to 37,981.63.
“Expectations of a stimulus package from the (Indian) government are also helping,” said Aamar Deo Singh, head advisory, Angel Broking.
“Markets have bounced back from important technical levels. 10,800 was an important technical support level and a lot of short covering has also happened,” Singh added.
The public sector bank index gained 3.3 per cent and the banking index rose 3.3 per cent after a report said the finance ministry may provide capital support to some public sector banks in the third quarter
Analysts also said investors were hoping for…