Indian shares closed 2.22 percent higher on Monday, buoyed by strong global trends as world oil prices fell, soothing inflationary pressures, dealers said. The benchmark 30-share Sensex index rose 336.1 points to 15,503.92, the fifth straight day of gains.
"Global markets gathered strength on lower crude. With crude expected to cool further, near-terms gains cannot be ruled out," said Bhaskar Kapadia, partner at brokerage Pyramid Securities. Dealers expect markets to track industrial production data due on Tuesday.
The latest official data showed that India's industrial production slowed sharply to 3.8 percent in May - its slowest pace in six years, hit by rising inflation, high input costs and monetary tightening. Last Thursday, India's inflation rose to 12.01 percent for the week ended July 26, which is considerably higher than the central bank's end-of-year target of seven percent.
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