Australian shares continued to rally on Monday, led by the information technology sector, with all but one sector trading in the green.

The S&P/ASX 200 Index rose 28.90 points, or 0.36%, to 7,997.10.

The information technology sector climbed 1.4% in trading on Monday, benefiting from a strong showing by the tech-heavy Nasdaq on Friday.

On the domestic front, business conditions and confidence among Australia's small and medium-sized enterprises improved in the first quarter, according to a survey by National Australia Bank. The business conditions index improved 3 points to negative 1 index points. The business confidence measure improved 4 points to negative 8 index points.

The Reserve Bank of Australia is all set to cut the interest rate in May, regardless of first-quarter inflation data due on Wednesday, Westpac said. It added that, "The turmoil abroad has...changed the game and flipped the risks."

The sustainable finance sector in Australia and New Zealand is in the early stages of development, and a combination of market drivers and global regulatory changes is likely to support its growth trajectory, Fitch Ratings said.

In company news, Telix Pharmaceuticals (ASX:TLX) said the US Food and Drug Administration (FDA) ruled that its New Drug Application for TLX101-CDx, an investigational agent for the imaging of glioma, cannot be approved in its current form. Its shares fell over 6% on market close.

ASX (ASX:ASX) is set to launch a review of its listing rules, including whether companies should disclose if they have secured a waiver to the rules, after backlash to its decision to allow James Hardie Industries (ASX:JHX) to proceed with a significant merger without a shareholder vote, The Australian Financial Review reported. Despite the decision to review the rules, James Hardie will be allowed to proceed with its transaction, per the report.

Domain Holdings Australia (ASX:DHG) said the initial exclusivity period granted to CoStar Group to undertake due diligence for its non-binding indicative acquisition proposal has been extended by two weeks to May 12.