* NSE index up 0.49 pct, BSE index 0.43 pct higher
* Cement makers rise; Ambuja Cements up nearly 10 pct
* Nifty PSU bank index up 1.5 pct
By Samantha Kareen Nair
May 8 Indian shares rose on Monday led by a
rally in Ambuja Cements and ACC Ltd after the
companies said they were exploring a merger, while lenders
extended gains after the government further empowered the
central bank to tackle bad debts in the sector.
Sentiment was also boosted by a rise in Asian stocks on
investor relief after centrist Emmanuel Macron comfortably won
the French presidential election. MSCI's broadest index of
Asia-Pacific shares outside Japan added 0.3
percent, snapping a three-day losing streak.
Broader gains were capped as investors awaited corporate
results in the days ahead, including from Bharti Airtel Ltd
on Tuesday and Hero MotoCorp Ltd on on
"While the French elections is also lifting market
sentiment, Indian banks continue to show positive trend.
Generally, markets will now react to the last bit of corporate
results that are expected," said Neeraj Dewan, director at
The broader NSE index was up 0.49 percent at
9,330.35 as of 0535 GMT, while the benchmark BSE index
was 0.43 percent higher at 29,986.18 percent.
Ambuja Cements rose as much as 9.9 percent after the company
said on Friday it was considering the merits of a merger with
its subsidiary ACC Ltd. ACC was up 5.8 percent.
"The merger makes sense because it will create a much larger
entity that could take over UltraTech Cement in terms of market
share. Some positive synergies such as lower costs are also
expected from the combination," Dewan added.
Banks continued to gain as India tweaked its laws last week
to help tackle a record $150 billion in bad loans. The
government authorized the Reserve Bank of India to direct banks
to initiate an insolvency resolution process in the case of a
default under provisions of the bankruptcy code.
The Nifty PSU Bank index climbed more than 1.5
percent. State Bank of India gained as much as 1.6
percent while Bank of India and Bank of Baroda
rose more than 2 percent each.
(Reporting by Samantha Kareen Nair in Bengaluru; Editing by