Indian shares closed higher on Monday, helped by the government's plan to offer further tax reforms and more capital to finance the country's infrastructure needs.

The NSE Nifty 50 index ended up 0.43% at 11,941.30, while the S&P BSE Sensex gained 0.36% to 40,309.53.

Stocks have been gaining steadily over the last few sessions, buoyed by positive global cues, a strong set of corporate results and expectations of a better third quarter.

Metals stocks were the top gainers, with the Nifty sub-index rising 3.14%. Meanwhile, the Nifty state-owned bank index climbed 0.7%.

Shares of Bharti Infratel Ltd surged as much as 7.48%. The stock closed up 6.20% and was the top gainer on the Nifty.

Zee Entertainment was the top loser with a 4.33% drop.