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Sensex, Nifty rise boosted by gains in state-run lenders


By Jessica Kuruthukulangara

(Reuters) - Indian shares rose on Monday and were headed for their third session of gain in four, driven by such as of India (SBI) after the government set up a panel to explore mechanisms for resolving the burgeoning bad debts plaguing the financial sector.

The panel will examine whether banks needed to set up an asset reconstruction company (ARC) or asset management company to take up the stressed assets from banks' balance sheets.

This is seen as positive, said Siddhartha Khemka, head of retail research,

Sentiment was also lifted by gains in Asian stocks ahead of a United States-summit that might ease regional tensions.

"There is expectation that some resolution will happen regarding U.S. and North Korea, which is a positive development on the geopolitical front," Khemka said.

Investors also await May data due on Tuesday for further cues about the local

Retail likely jumped further in May to a four-month high, primarily driven by a surge in energy prices, according to a poll of economists, suggesting more policy tightening from the central is coming.

The broader NSE Nifty was up 0.56 percent at 10,828.30 as of 0631 GMT, while the benchmark was 0.50 percent higher at 35,620.54.

The Nifty PSU index gained as much as 1.9 percent to a two-month high. SBI rose 2 percent to its highest since Feb. 26, while jumped 4.7 percent.

The Nifty pharma index gained 2.1 percent, boosted by after the U.S. health regulator issued a "voluntary action indicated status" for the company's

dropped 8.6 percent to a record low after the company said its auditors (P&A) resigned, citing "time constraints".

PNB Housing Ltd fell 6.3 percent after newspaper reported U.S. private equity firm was looking to sell its stake in it.

(Reporting by in Bengaluru; Editing by Subhranshu Sahu)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 11 2018. 12:17 IST