Shares on the benchmark indices rose for an eighth straight session on Monday, led by banks as RBI appealed to the Supreme Court to allow lenders classify loans as non performing-assets, raising hopes of some relief for the battered sector.

The NSE Nifty 50 index rose 0.45 per cent to 11,967.85, while the S&P BSE Sensex was up 0.6 per cent at 40,742.39.

Late on Friday, the Reserve Bank of India appealed to the Supreme Court to let banks classify loans as non-performing, saying a ban imposed to help borrowers during the Covid-19 pandemic could greatly harm the financial system.

The Nifty banking sub-index rose 0.6 per cent, with State Bank of India and Kotak Mahindra bank among the top gainers on the blue-chip Nifty 50, adding 2.2 per cent and 1.8 per cent respectively.

“Banks will be required to recognise NPAs if the Supreme Court agrees... banks will also be willing to lend to borrowers on the fringe once there is clarity,” said Deepak Jasani, head of research, HDFC Securities.

IT major Infosys gained 1.8 per cent ahead of its quarterly results due later this week. The Nifty IT index was up 1.1 per cent, after Tata Consultancy announced a big buyback and posted strong margins last week.

Market participants are now awaiting consumer price inflation data due today and a finance ministry press conference on economic issues at noon for further direction.

Shares of UTI Asset Management Company slid 9.8 per cent to Rs 500 on their debut and Mazagon Dock Shipbuilders jumped 48.2 per cent on its first day of trading.

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