Sensex at 2-1/2 week high; rate-sensitive stocks rise

MUMBAI (Reuters) - The BSE Sensex and Nifty rose for the sixth straight session on Wednesday, hitting their highest in nearly 2-1/2 weeks, as interest-rate sensitive stocks such as ICICI Bank gained on hopes of rate cuts by the Reserve Bank of India due to slowing inflation and reforms in the upcoming budget would aid credit growth.

Investors have started building positions ahead of the budget, due on Feb. 28, on expectations of faster reforms, especially after Prime Minister Narendra Modi's Bharatiya Janata Party was routed in the Delhi state elections.

A firm trend across regional markets also helped sentiment.

The benchmark BSE Sensex gained 0.63 percent to close at 29,320.26 points, while the broader Nifty ended up 0.68 percent at 8,869.10.

 

(Reporting by Indulal PM; Editing by Prateek Chatterjee)