BENGALURU: Indian shares advanced on Monday, led by an uptick in financials while improved global cues due to a weekend debt ceiling deal in the US added heft.

The blue-chip Nifty 50 index closed 0.54% higher at 18,598.65, while the benchmark S&P BSE Sensex rose 0.55% to 62,846.38.

Both benchmarks closed at five-month highs for the second session in a row. Technical indicators showed the Nifty 50 moved to the overbought zone on Monday, implying a potential slide in the near term.

The benchmark is nearly 300 points away from its record-high levels. “Nifty looks set for a new high after the consolidation breakout,” said Ajit Mishra, vice president - research at Religare Broking. Analysts had expected Nifty to trade in the 18,050-18,450 range, ahead of the recent rally.

“Focus should remain on identifying the leaders across sectors instead of adding laggards in the hope of recovery.” Eleven of the 13 sectoral indexes logged gains, with the high-weightage financials rising 0.84%.