* NSE index up 1.11 pct, BSE index 1 pct higher
* RBI policy meeting on Tues, rate call by new monetary
* Maruti Suzuki hits record high on upbeat monthly sales
Oct 3 Indian shares rose more than 1 percent on
Monday as expectations of a rate cut by the central bank lifted
lenders and as auto makers such as Maruti Suzuki
rallied after reporting strong sales for September.
Sentiment was also boosted as Asian shares got the new
quarter off to a firm start, with MSCI's broadest index of
Asia-Pacific shares outside Japan gaining 0.8
percent, as concerns eased about the health of German lender
The Reserve Bank of India is due to hold its policy review
on Tuesday, with a monetary policy committee set to fix interest
rates for the first time.
Analysts were broadly divided on the outcome, with about 60
percent of the 44 analysts polled by Reuters expecting the
central bank to hold rates and the rest expecting at least a 25
basis point cut.
The meeting on Tuesday will also be Urjit Patel's maiden
policy review as the governor.
"There is some optimism because of an expectation of a rate
cut," said Saurabh Jain, assistant vice president of research at
SMC Global Securities.
The broader NSE index was up 1.11 percent at
8,706.60 as of 0615 GMT, while the benchmark BSE index
was 1 percent higher at 28,142.80.
Banking stocks were among the top performers. IndusInd Bank
Ltd and HDFC Bank Ltd led the rise with
gains of 3.37 percent and 1.19 percent, respectively.
Meanwhile, State Bank of India rose 2.15 percent
after the government extended Chairman Arundhati Bhattacharya's
term by one year, allowing her more time to lead a clean-up of
bad assets and oversee a merger of affiliates.
Auto makers also gained on the back of upbeat monthly sales.
Maruti Suzuki Ltd rose as much as 4.43 percent to
a record high after posting a rise of 31 percent in September
Mahindra and Mahindra Ltd and Eicher Motors Ltd
rose over 3 percent each, while Tata Motors Ltd
was up 2.08 percent.
On the Nifty, the IT index was the only sector in
red. Tata Consultancy Services Ltd was the biggest
percentage loser, falling as much as 1.22 percent.
(Reporting by Darshana Sankararaman in Bengaluru; Editing by