Mumbai: Rallying for the eighth consecutive session, the benchmark BSE Sensex on Tuesday rose 74.16 points to 27,804.37, its longest winning streak this year, in view of above-normal monsoon coupled with resumption in foreign fund inflows amid firm global cues.
The Sensex has zoomed by 1,433 points during this period.
Experts are attributing renewed buying interest by foreign portfolio investors to Arun Jaitley's US visit.
"Finance Ministers drive to sell India-story to foreign investors has provided additional momentum to the recent rally," said Vinod Nair, Head-Fundamental Research of Geojit BNP Paribas Financial Services.
Foreign portfolio investors (FPIs) bought shares worth Rs 651.31 crore yesterday.
On the day, the BSE Sensex resumed higher at 27,760.11, but slipped into negative terrain briefly as profit-booking emerged at higher levels. However, it bounced back to hit a high of 27,882.66, before settling at 27,804.37, a gain of 74.16 points or 0.27 percent.
The NSE Nifty ended with a gain of 28.45 points or 0.34 percent at 8,381.55 after shuttling between 8,398.45 and 8,334.95.
Hopes that better-than-forecasted monsoon may help the RBI cut rates sooner than expected, too triggered buying activity, traders added.
"Tailwinds like good development to monsoon till date, better CPI numbers and increase in MSP has improved domestic sentiment," Nair said.
Globally, Asian and European stocks edged higher on hopes that Greece will strike a deal with its creditors to avert bankruptcy.
"Strong global cues on hopes that Greece will come to some kind of reforms-for-rescue deal with its international creditors this week after Athens presented a new set of reform proposals," said Gaurav Jain, Director of Hem Securities.
Key indices in France, Germany and the UK rose in the range 0.17 to 1 percent.
In Asian markets, key indices from China, Japan, Hong Kong, Taiwan, Singapore and South Korea ended higher between 0.53 to 2.19 per cent.
The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, rose to 49.6 in June from a final reading of 49.2 in May.
Pramit Brahmbhatt, Veracity Group CEO said: "...Equities continued to trade strong and extended its gain...Monsoon has ignited the hopes of the investors that Reserve Bank of India would cut rates in October instead of delaying it into 2016."
Of the 30-share Sensex pack, 19 ended higher, while Vedanta ended steady.
Major gainers were Coal India (3.85 percent), Cipla (2.70 percent), Larsen (1.96 percent), M&M (1.91 percent), NTPC (1.50 percent), ITC (1.37 percent), HDFC (1.28 percent) and Bharti Airtel (1.25 percent).
IT major Infosys slipped 2.2 percent as experts say the company failed to give a clear near-future guidance post its annual general meeting.
Among the BSE sectoral indices, metal rose by 1.71 percent followed by capital goods 1.41 percent and oil&gas 0.83 percent, while IT dropped by 1.08 percent.
The market breadth remained positive as 1,468 stocks ended in the green, 1,242 closed in the red and 112 ruled steady. Total turnover rose to about Rs 2,483 crore from Rs 2,324.97 crore yesterday.
Stocks are expected to remain volatile this week in view of expiry of futures & options June contract on coming Thursday.
