Indian shares rise on government's stimulus boost

Indian shares gained on Monday, led by a surge in financial stocks, as investors cheered the government's decision to withdraw a recent tax surcharge on foreign investors and speed up a $10 billion capital infusion into state-run banks, reports Reuters. The broader NSE index was up 0.7 per cent at 10,908.05 as of 0354 GMT, while the benchmark BSE index was 0.82 per cent higher at 36,995.07.

On Friday, Finance Minister Nirmala Sitharaman outlined a raft of measures in an attempt to lift consumer sentiment and promised more actions soon to revive slowing economic growth.

"Friday's announcement is a turning point for domestic market. It could have been better if the global factors were also accommodating," said Sunil Sharma, chief investment officer at Sanctum Wealth Management in Mumbai.

"The development with US-China is an overhang."

Broader Asian shares slumped on Monday as deteriorating trade relations between US and China shook confidence in the world economy and sent investors steaming to the safe harbours.

India, Asia's third-biggest economy, is facing a slow growth that has dampened demand for everything from cars to cookies, and a poorly received budget proposal on higher taxes for foreign portfolio investors had contributed to a selloff in the markets.