Sensex rises 1% to register best close in seven months

Indian shares closed stronger on Thursday, bolstered by gains in banking stocks as most sectors ended in positive territory on the day of expiry of monthly derivatives contracts.

"Most banks have given good returns for the month, they have given the best return for derivatives settlement, short-covering is helping in the last moment," said AK Prabhakar, head of research, IDBI Capital in Mumbai.

The benchmark BSE Sensex closed 1.08 percent firmer at 38,545.72, marking its best close since Sept. 3, 2018.

The broader NSE Nifty ended 1.09 percent higher at 11,570, posting its strongest close since Aug. 31, 2018.

Nifty PSU banks index settled 3.62 percent higher and added 21.2 percent so far this month.