Mumbai: Benchmark stock market indices climbed for the second consecutive trading session on Wednesday with metal and financial stocks emerging as top gainers. Sentiments on Dalal Street were further boosted by buying activity by foreign institutional investors.

The biggest factor behind today’s rally was strong buying activity by foreign institutional investors

At Wednesday’s closing, the S&P BSE Sensex rose 0.64 per cent to 61,045.74, while the NSE Nifty50 closed 0.62 per cent higher at 18,165.35. It may be noted that benchmark indices closed at their highest levels in two weeks.

Nifty Metal emerged as the biggest gainer, advancing over 1.6 per cent. Brokerage firm CLSA has upgraded several metal stocks including Tata Steel, which gained nearly 3 per cent. Hindalco Industries was another top gainer among metal stocks.

Financial stocks also ended the trading session on a strong note, with private lender HDFC Bank gaining 1.76 per cent on the Nifty50 index after it reported a 18.5 per cent jump in third-quarter net profit over the weekend. The uptick in HDFC Bank and its parent company HDFC supported the rally in benchmark indices.

The biggest factor behind today’s rally was strong buying activity by foreign institutional investors as on January 17. FIIs purchased shares worth Rs 2110 crore on a net basis.

However, analysts continue to flag high valuations in domestic markets and fear that it could lead to extended selling pressure from FIIs in the near term.