(Updates for markets close) By Vivek Kumar M and Bharath Rajeswaran Oct 6 (Reuters) - Indian shares rose on Monday as banks and financials gained after strong quarterly updates, while IT stocks advanced ahead of September results. The Nifty 50 <.NSEI> rose 0.74% to 25,077.65 and the BSE Sensex <.BSESN> gained 0.72% to 81,790.12. Twelve of the 16 major sectors rose, with private banks <.NIFPVTBNK> and financials <.NIFTYFIN> jumping 1.2% and 1.1%, respectively. HDFC Bank , the heaviest weighted stock on the Nifty 50 index, added 0.9%, while Kotak Mahindra Bank jumped 2% after the lenders reported strong growth in loan disbursal for the September quarter. Bajaj Finance jumped 1.9% after it said its assets under management increased by about 24% year-on-year during the July-September quarter. The quarterly business updates from banks and financials reaffirm expectations of a gradual improvement in earnings, supporting stronger performance in benchmarks after their underperformance to other Asian, emerging market peers, said Alekh Yadav, head of investment products at Sanctum Wealth. IT index <.NIFTYIT> rose 2.3%. They have added 3.2% in three sessions, rebounding from the losses seen earlier on concerns over U.S. labour market and H-1B visa fee hike. While earnings of the companies are likely to be muted due to lack of improvement in demand, the recent price correction has created an attractive risk-reward setup for investors, with valuations turning more reasonable, said Kuber Chauhan and Abhishek Bhalotia, analysts at Axis Securities. The broader mid-caps <.NIFMDCP100> and small-caps <.NIFSMCP100> rose 0.9% and 0.3%. Among other stocks, Fortis Healthcare rose 7% and hit a record high after markets regulator gave its nod to Malaysia IHH Healthcare to buy an additional 26.1% stake each in Fortis and its unit Malar Bucking the broader trend, retailer Trent dropped about 1% after it reported slower-than-expected revenue growth for the September quarter. Drugmaker Lupin fell 1.8% after the U.S. Food and Drug Administration classified its Pithampur unit-2 manufacturing facility as needing regulatory and/or administrative action. (Reporting by Vivek Kumar M and Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng, Mrigank Dhaniwala and Janane Venkatraman) ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;)) Keywords: INDIA STOCKS
