Mumbai: Indian shares rose more than 1% on Monday afternoon, recovering from a fall of 0.7% earlier helped by gains in regional indices and expected gains in Europe.
At 1:17 pm, the 30-share BSE index was up 1.08% at 8,850.81 points, with 22 stocks advancing. The 50-share NSE index was up 1.01% at 2,746.80.
Markets had given up early gains late morning as investors locked in profits after the market had risen more than 5% last week.
Traders said lingering concerns about the health of the global economy overshadowed hopes for a recovery in the US banking system.
“We saw the market rise in the previous two sessions, and this being a period of uncertainty, investors are taking advantage of that today,” said V P Chaturvedi, managing director at Tata Mutual Fund. “Trade will remain choppy in the near term.”
Oil and gas segment gained by 3%, followed by realty, banking, consumer durables and metal.
Jaiprakash Associates was reportedly the top gainer in the BSE pack along with Mahindra and Mhaindra, Reliance Communication, Ranbaxy Laboratories and DLF Ltd.
Bharti Airtel , which slumped 7.2% last week after news its chief executive had sold his holding in the firm, recovered 2.38% to Rs572 on a newspaper report it would restructure its businesses next month as it looks to expand beyond voice telephony.
Asian stocks struck a one-month high on Monday as reassurances over the health of the US banking sector sparked a broad recovery in investor appetite for risk.