Indian equity shares 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 central bank 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 February 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 the sentiment.

The 30-share BSE index Sensex jumped 184.38 points or 0.63 per cent to 29,320.26 and the 50-share NSE index Nifty moved up by 59.75 points or 0.68 per cent to 8,869.10.

Among BSE sectoral indices, consumer durables index gained the most by 1.81 per cent, followed by power 1.45 per cent, capital goods 1.34 per cent and IT 1.09 per cent. On the other hand, metal index was down 1.72 per cent, realty 0.39 per cent, oil & gas 0.38 per cent and infrastructure 0.16 per cent.

Major Sensex gainers were HDFC 2.96%, Tata Power 2.5%, TCS 1.88%, Tata Motors 1.59% and M&M 1.52%, while the major losers were Hero MotoCorp 5.09%, SSLT 3.19%, Bharti Airtel 2.43%, ONGC 2.32% and Bajaj Auto 0.97%.

Brokers said optimistic buying by participants ahead of the Budget and acceleration in economic reforms by the government, led to the rise.

Further, a firm trend in global markets on hopes of a settlement in Greece’s debt stand-off after it emerged that the country will ask for an extension to its bailout and avoid a painful euro zone exit, influenced the trading sentiment here, they added.

European shares rose on Wednesday, led by southern European indexes on fresh optimism that Greece would reach an agreement with its international lenders.

A source close to the government said Greece intends to ask on Wednesday for an extension for up to six months of a loan agreement with the euro zone, on conditions to be negotiated.

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