By Jessica Kuruthukulangara
(Reuters) - Indian shares rose on Monday and were headed for their third session of gain in four, driven by state-run lenders such as State Bank 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, Motilal Oswal Securities.
Sentiment was also lifted by gains in Asian stocks ahead of a United States-North Korea 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.
Retail inflation likely jumped further in May to a four-month high, primarily driven by a surge in energy prices, according to a Reuters poll of economists, suggesting more policy tightening from the central bank is coming.
The broader NSE Nifty was up 0.56 percent at 10,828.30 as of 0631 GMT, while the benchmark BSE Sensex was 0.50 percent higher at 35,620.54.
(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Subhranshu Sahu)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)