Sensex rises over 250 pts; Auto, Bankex gain 2.5%

The 30-share BSE Sensex gained nearly 300 points as rally extended in banks, FMCG, auto and capital goods stocks. Index heavyweight Reliance Industries rose nearly 2%.
 
The BSE benchmark surged 281.13 points or 1.69% to 16,959.01 and the NSE benchmark moved up 89.65 points or 1.77% to 5,144.40.

France's CAC and Britain's FTSE rallied over 1% ahead of Greek election over the weekend. Germany's DAX gained 0.9%.

Back home, shares of commercial vehicle major Tata Motors advanced 5.55% amid heavy volumes after its global sales increased 10% month-on-month and 12% year-on-year to 96,089 units for May. Subsidiary Jaguar & Land Rover reported better than expected sales in same month that grew 19.7% MoM and 35% YoY to 30,094 units.

Among other auto stocks, Hero Motocorp, Mahindra & Mahindra and Maruti Suzuki climbed 2.5-3%.

Traders were adding long positions in auto and banks stocks ahead of RBI's mid-quarter policy review on Monday. Auto and Bankex gained 2.5%.

Country's largest lenders State Bank of India, ICICI  Bank and HDFC Bank were up 1.5%, 2.4% and 3.77%, respectively.

Engineering and construction major by sales Larsen & Toubro rose over 2% while state-owned capital goods company BHEL was up 1%.

FMCG majors ITC and HUL advanced 1.4% and 1.8%, respectively. top software services exporters TCS and Infosys were up 0.8-1%.