Mumbai: Benchmark indices Sensex and Nifty continued their rising streak for a third session in a row on Tuesday, led by gains in banking, metal and energy stocks amid signs of subsiding global trade war concerns. The BSE gauge Sensex rose 165.94 points, or 0.42 per cent, to close at 39,950.46; while the NSE benchmark Nifty gained 42.90 points, or 0.36 per cent, to settle at 11,965.60.
Banking stocks rallied on positive sentiments after a report said that the system-wide non-performing assets stock declined to 9.3 per cent in March 2019, much faster than the Reserve Bank's estimate and steeply down from 11.5 per cent the year before.
Broader BSE midcap and smallcap indices outperformed benchmark Sensex.
Sectorally, metal, oil and gas and banking indices rose as much as 1.33 per cent.
Top Sensex gainers were Tata Motors, ONGC, Yes Bank, IndusInd Bank and Vedanta -- rising up to 2.71 per cent. Other gainers included HCL Tech, ICICI Bank, Tata Steel, SBI, Hero Motocorp, TCS, Bajaj Finance and Reliance.
On the other hand, Sun Pharma, M&M, L&T, Coal India and HUL fell up to 3 per cent.
Of the Sensex constituents, 23 stocks ended in the green and 7 in the red.
Globally, investors have heaved a sigh of relief tracking a host of factors like the United States suspending import tariffs on Mexico and China taking measures to boost local spending on infrastructure.
Besides, hopes that the US interest rates will be cut have also aided market sentiment.
In Asia, Shanghai Composite Index rallied 2.58 per cent, Hang Seng ended 0.76 per cent higher, Nikkei rose 0.33 per cent and Kospi gained 0.59 per cent.
Bourses in Europe were also trading higher in their early deals.
"Positive momentum was triggered in banking stocks based on report that system-wide NPA level has declined to 9.3 per cent in March 2019 from 11.5 per cent a year back. Still the broad trajectory of the market remains indecisive and await fresh triggers in this expensive valuation," said Vinod Nair, Head of Research, Geojit Financial Services.
"News of government stimulus in China boosted Asian and European equities while trade war concerns has also subsided marginally. A further tensions can emerge ahead of the G20 meet this month given the war of words exchanged between China and the US," he added.
On the currency front, the Indian rupee appreciated by 21 paise to 69.44 against the US dollar.
Brent crude futures, the global oil benchmark, fell marginally to USD 62.24 per barrel.
