Indian shares up on factory data

Indian labourer works at a metal workshop
Image caption The rise in factory output was higher than analysts had expected

Indian shares have risen to their highest level in more than two and a half years after data showed industrial output rose faster than expected.

Figures released on Friday, when the market was closed for a holiday, showed July's factory output was up 13.8% compared with a year ago.

India's benchmark Sensex index rose 408.67 points, or 2.17%, to 19,208.33, its highest since January 2008.

Banks led the gains as investors expect demand for loans to rise.

Shares in State Bank of India, the country's largest lender, led the risers, gaining 5.5%, HDFC Bank rose 5.32% and ICICI Bank 4.43%.

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