Sensex rebounds on gains in financials

By Tanvi Mehta

(Reuters) - Indian shares rose on Monday, snapping a five-day losing run, as some of the losses were seen as overdone and weak U.S. inflation data dampened prospects of a rate hike this year, lifting sentiment across global markets.

Banks were among the top gainers, with the Nifty Bank index up 0.74 percent, after losing 3.4 percent last week.

Housing Development Financial Corp and HDFC Bank advanced 2.6 percent and 1.1 percent, respectively, and were among the leading gainers.

Meanwhile, Asian stocks bounced back after three losing sessions, although broader sentiment was tempered by continued tensions between the United States and North Korea. The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7 percent.

"The strength and recovery in global markets did lend some support to our indices," said Pritesh Mehta, head of technical research, IIFL Wealth.

"But thereafter, the reason has been the strength in Bank Nifty, HDFC, and exhaustion of selling pressure in the markets."

The broader NSE Nifty was up 0.83 percent at 9,791.40 as of 0537 GMT, after falling 3.5 percent last week - its biggest weekly decline in 1-1/2 years.

The benchmark BSE Sensex rose 0.82 percent to 31,470.36, after falling nearly 3.5 percent last week.

Real estate developer DLF Ltd surged as much as 13.7 percent after saying on Saturday it was in the final stages of talks for a transaction involving its rental unit arm.

DLF had previously said it was in talks with Singapore sovereign wealth fund GIC to sell a 40 pct stake in its property rental unit.

Meanwhile, Sun Pharmaceutical Industries and Bharat Petroleum Corp Ltd fell, after posting disappointing June-quarter results on Friday.

Markets will be closed on Tuesday on account of a public holiday.

(Reporting by Tanvi Mehta in Bengaluru; Editing by Amrutha Gayathri)