Sensex ends higher as Modi's party leads in state polls

Indian shares reversed earlier losses to end higher on Monday as Prime Minister Narendra Modi`s party appeared to win elections in his home state of Gujarat for a sixth term as counting of votes progressed.

The BSE Sensex rose 0.41 percent to 33,601.68, while the broader NSE Nifty ended 0.54 percent higher at 10,388.75. Both indexes were led by gains in financial stocks.

The rupee recovered from early losses, but was still trading marginally lower against the US dollar, while bond yield hit a fresh 16-month high

The indexes dropped as much as 2.5 percent each in early trading as initial counting showed a close fight between the ruling Bharatiya Janata Party and the main opposition Congress party.