Indian shares rise in special 'muhurat' session on Diwali

NEW DELHI (Reuters) - Indian shares made modest gains in a special "muhurat" one-hour trading session for Diwali on Sunday, underpinned by banks and automobile stocks.

"Muhurat" means auspicious in Hindi, and many traders believe gains made during this session bring prosperity and wealth in the year ahead. Regular trading resumes on Tuesday.

The benchmark BSE Sensex rose 0.49% to 39,250.20, while the broader NSE Nifty climbed 0.37% to 11,627.15.

The Nifty PSU Bank index, which tracks the country's state-owned lenders, settled 0.29% higher.

Shares in the State Bank of India settled 0.09% higher. The State Bank of India, the country's biggest lender by assets, reported a three-fold rise in profit for the quarter ending in September.

Private lender ICICI Bank Ltd ended 0.1% higher.

Tata Motors Ltd finished the session 16.44% higher.

On Friday, Jaguar Land Rover owner Tata Motors posted a smaller-than-expected loss in the second quarter as a pick up in sales of its luxury car in China helped it ride out weak vehicles sales in India, its home market.

Improved sales for JLR is an indication of recovery for the iconic British brand which had been hit by a trend to move away from diesel cars towards cleaner fuels in markets such as China and Britain.

(Corrects second paragraph to say regular trading resumes on Tuesday, not Monday)

(Reporting by Mayank Bhardwaj, editing by Deepa Babington)