Sensex near two-week closing high; banks gain

The BSE Sensex and the Nifty rose for a third consecutive session on Tuesday to their highest closing levels in nearly two weeks, as a rally in debt markets boosted banks, the biggest holders of bonds, while sentiment remained underpinned by global factors. The Sensex rose 0.19 per cent, or 40.08 points, to end at 20,890.82, marking its highest close since November 6. The broader Nifty rose 0.23 per cent, or 14.35 points, to end at 6,203.35, marking its third consecutive session of gains.

Banks rose on the back of a rally in debt markets, which benefited from a stronger rupee and the introduction of a new benchmark 10-year bond this week. Banks benefit from higher debt prices given that they are the biggest holders of government bonds. State Bank of India rose 3.2 per cent, while ICICI Bank ended 1.1 per cent higher.