In my basement, the steel water pipe in a PVC pipe enter into the basement from the front yard outside. During raining days, there are water leaking into the basement from the peripherals of the steel pipe and the PVC pipe. The hole in the cement wall is a little bigger than the PVC pipe (about 2 1/2" diameter), and the steel pipe inside the PVC pipe (about 1 1/4" diameter) is much smaller than the PVC pipe. What is the best way to stop the leaking, and what materials need to be used?

There are non-hardening putty like materials you can use for this... THey have it in the electrical section at home depot. But the surface needs to be dry first.

Silicone caulk and make sure the dirt is graded away from the house.