By Gurdev Singh Virk MUMBAI--Indian shares ignored weak local economic data to end higher Monday, boosted by positive cues from regional markets and a fall in oil prices. The Bombay Stock Exchange's S&P BSE Sensex index ended higher by 1.4% at 18886.13 points--its highest level since Aug. 14. On the National Stock Exchange, the Nifty index gained 1.4% to end at 5550.75 points. The local currency, which had gained against the U.S. dollar in the previous two sessions, was slightly weaker. In late afternoon trade, the dollar was at 65.95 rupees, compared with 65.70 rupees late Friday in Asia. "Short-covering after a steep fall in share prices last month and a decline in oil prices helped sentiment for stocks," said Nilesh Karani, vice president for research at Mumbai-based Magnum Equity Broking. Further gains could be limited as the economic picture remains grim, Mr. Karani said, adding that he expects the Nifty to find strong resistance at 5650 this week. India's manufacturing sector output in August contracted for the first time since March 2009 as new orders fell, a survey showed Monday, increasing worries for authorities struggling to revive growth in the ailing South Asian economy. The reading of HSBC India Manufacturing Purchasing Managers' Index came after data showed late Friday that India's economic growth slowed to 4.4% in the April-June period from 4.8% growth rate in previous quarter. It was also the weakest expansion since the first quarter of 2009. In Asia, most markets ended higher after strong manufacturing data from China reinforced a picture of stability in Asia's largest economy--China's official purchasing managers index rose to a 16-month high in the past month. In India, cigarette manufacturer ITC rose 3.8% Monday to close at 319.40 rupees and consumer-goods maker Hindustan Unilever added 1.6% to 638.65 rupees. Mortgage lender Housing Development Finance ended 2.5% up at 735.70 rupees, while nonstate lender ICICI Bank gained 2.8% to close at 826.90 rupees.

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