BSE Sensex rises 4th day; Reliance, SBI rally

By Ami Shah

MUMBAI (Reuters) - The BSE Sensex climbed 2.1 percent on Monday, extending a winning streak to a fourth consecutive session, with Reliance Industries leading the way after a newspaper said the energy giant was close to an overseas buy.

Firmer global stocks after the Group of 20 pledged to keep stimulus in place until there was assured recovery, after data showed the U.S. unemployment rate rose to a 26-year high also helped sentiment.

Reliance, which has the most weight in the main index, rose 3.5 percent to 2,024.55 rupees after the Economic Times reported it was close to a nearly $6 billion overseas acquisition and the likely target was the assets of bankrupt petrochemicals firm LyondellBasell.

"It would be a good buy at a time when the world braces for recovery," said Prayesh Jain, a research analyst with India Infoline.

"Reliance has a huge cash pile and is comfortable with the leverage position. If this acquisition does happen, it will not really burden its balance sheet," he said.

The 30-share BSE index closed up 2.11 percent, or 340.44 points, at 16,498.72, its best close in two weeks. Twenty-five of its components advanced.

"There is a lot of speculative buying happening, with positive global cues supporting," said Ambareesh Baliga, vice-president of Karvy Stock Broking.

"But, the worry is the valuations are expensive. The correction we saw recently was warranted," he said.