A man looks at a screen across a road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, India. REUTERS

Indian stocks recovered from losses to close higher on Monday, led by lenders such as State Bank of India and Axis Bank

Asian stocks retreated from record highs and the dollar advanced as investors turned their attention to U.S. tax reform ahead of a busy week.

MSCI's broadest index of Asia-Pacific shares outside Japan rose early in the session on Friday's Wall Street gains but was last down 0.65 percent.

Economic reports from the U.S., China, Japan and India this week will allow investors to assess progress for global growth.

The S&P BSE Sensex added 0.13 percent at 33,724 while the broader NSE Nifty edged up 0.09 percent to 10,399.

Overseas investors have invested $2.4 billion so far this month, which is the highest since March.

Among the top Sensex gainers, State Bank of India rose 0.9 percent, Axis Bank added 2.7 percent, NTPC advanced 3.1 percent while ONGC was up 1.4 percent.

The S&P BSE Bankex Index gained 0.5 percent and was among the top sectoral gainers.

Videocon Industries jumped 5 percent after the company said it seeks shareholders nod for raising Rs2,000 crore via shares.

Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.