India's key benchmarks advanced over one per cent on Monday, helped by a recovery in financials, strong earnings, and on improved sentiment following robust economic data from the US.

The Nifty 50 closed 1.08 per cent higher at 18,264, while the S&P BSE Sensex rose 1.16 per cent to 61,764.25. Both benchmarks posted their best single-day gains in over a month.

Eleven of the 13 major sectoral indexes advanced, with high weightage financials rising 1.5 per cent. Nifty Bank and Nifty Private Bank also gained nearly 1.5 per cent each.

The financials index recovered from a 2.34 per cent drop on Friday, its worst day in over three months, dragged by Housing Development Finance Corporation and HDFC Bank on concerns of foreign funds outflows from their merged entity.

On Monday, IndusInd Bank Ltd rose nearly 5 per cent and was among the top Nifty 50 gainers. The private lender's stock shed over 5 per cent on Friday after the resignation of the chief risk officer. Global brokerage firm Jefferies said the exit should not warrant such a price correction and reiterated its "buy" rating.

Global cues improved after US jobs data for April brightened the economic outlook, temporarily easing concerns over the health of the economy and triggering gains in Wall Street equities. Asian markets inched higher.

"Strong U.S. data has helped ease recession worries temporarily," said Prashant Tapse, senior vice president for research at Mehta Equities. Analysts expect the Nifty 50 to consolidate in the near-term with resistance seen near 18,200 levels.

Among individual stocks, Marico jumped over 7.5 per cent after posting a 20 per cent jump in March-quarter profit.

One 97 Communication Ltd, Paytm's parent, climbed 5 per cent after reporting a narrower loss in the fourth quarter.

On the other hand, Coal India lost 2 per cent and was among the top Nifty 50 losers following a 17 per cent fall in quarterly profit on higher provisions for wage hikes.

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