Sensex marks longest winning streak in five months

The BSE Sensex rose on Tuesday for an eighth consecutive session of gains, its longest winning streak in nearly five months, on renewed optimism over Greek debt talks, while state-run banks gained on hopes of capital infusion.

The 30-share BSE Sensex gained 0.27 per cent at 27,804.37, marking its longest gaining streak since an eight-session rally to January 27, while the 50-share Nifty finished 0.34 per cent higher at 8,381.55.

Government plans to inject about $3 billion into state-owned banks this fiscal year, and potentially $6 billion next year, to help recapitalise the sector and allow it to meet Basel III rules, Finance Secretary Rajiv Mehrishi told to a news channel.

Hopes of monsoon may help the Reserve Bank of India cut rates in October than in 2016, as anticipated earlier after delivering three cuts of 25 basis points each in 2015, so far, also helped.

"Fair conclusion of Greece debt issue and kindness of rain gods can continue to bode well for equities and the economy," said Deven Choksey, managing director at KR Choksey Securities.

State-run banks led gains on the NSE index, with Punjab National Bank and Bank of Baroda jumped 3.62 per cent and 2.80 per cent to Rs 143.05 and Rs 150.50, respectively. The NSE sub-index for banking stocks rose 0.30 per cent on Tuesday.

Among other blue-chips, Coal India, Cipla and Larsen & Toubro jumped 3.85 per cent, 2.70 per cent and 1.96 per cent, respectively. On the other hand, Infosys and Hero MotoCorp dipped 2.27 per cent and 2.22 per cent, respectively.

(Reuters)