Indian shares ended over 2 percent higher on Monday, led by a surge in financial stocks, as investors cheered the government’s decision to withdraw a recent tax surcharge on foreign investors and speed up a $10 billion capital infusion into state-run banks.

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The Sensex ended 793 points higher at 37,494, while the broader Nifty50 index added 228 points to end the day at 11,058. In broader markets, the Nifty Midcap rose 1.6 percent and Nifty Smallcap index advanced 2.4 percent.

On Friday, finance minister Nirmala Sitharaman outlined a raft of measures in an attempt to lift consumer sentiment and promised more actions soon to revive slowing economic growth.

Other Asian markets slumped as deteriorating trade relations between the United States and China shook confidence in the world economy and sent investors steaming to safe harbours.

Adani Ports, HDFC, Bajaj Finance, YES Bank, and Ultratech Cement were top gainers on the Nifty50, while JSW Steel, Vedanta, Tata Steel, Hero MotoCorp, and Sun Pharma led the losses.

All sectoral indices, except Nifty Metal, ended in green for the day. The banking indices rose the most With Nifty Bank, Nifty PSU Bank and Nifty Private Bank up over 3.5 percent each. Meanwhile, Nifty Financial Services index rose 4 percent and Nifty Realty added 3.7 percent. However, Nifty Metal declined 1 percent on rising US-China trade tensions.

Banking stocks gained post the finance minister's announcement on Friday. YES Bank, RBL Bank, HDFC Bank, ICICI Bank, Punjab National Bank, and the State Bank of India rose between 3-6 percent.

Globally, MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1.9 percent, and Australia 1.3 percent. Japan’s Nikkei lost 2.2 percent, while Shanghai blue chips fell 1.2 percent.

First Published:Aug 26, 2019 4:02 PM IST