Sensex, Nifty End Off Day's Highs

Indian shares ended Monday's session higher despite paring some early gains.

Underlying sentiment was boosted after U.S. president Joe Biden and House speaker Republican Kevin McCarthy have reached an agreement to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025. The deal is now ready to move to Congress for a vote.

Higher levels attracted profit taking as investors fretted over further monetary policy tightening by the Federal Reserve.

The Fed's preferred inflation gauge - the personal consumption expenditures (PCE) price index - came in stronger than expected on Friday and U.S. consumer spending also increased more than expected in April, raising market expectations for another 25-bps rate hike from the Federal Reserve next month.