Indian market gave the Greece deal a big thumbs-up with the benchmark BSE Sensex rising 300 points for the second day to 27,961.19 — its biggest single-day gain in three weeks — driven by across-the-board buying activity and tracking upbeat global stocks.
“An easing of crude prices provided the additional strength to the Indian market which was initiated by global rally led by Greece bailout. The new Greece bailout deal will provide an immediate relief to global risk,” Vinod Nair, Head Fundamental Research, Geojit BNP Paribas Financial Services.
Hopes of a rate cut by the Reserve Bank in the wake of weak IIP numbers buoyed trading sentiment too.
Besides, a higher closing at other Asian markets and a better opening in European markets, which jumped up to 3 percent, had a positive impact, brokers said.
The 30-share index opened higher and quickly regained the crucial 28,000-mark in afternoon trade to hit the day’s high of 28,005.17.
But profit-booking at improved levels dragged it down below the 28,000-mark, which settled at 27,961.19, a rally of 299.79 points, or 1.08 per cent, its biggest single-session gain since June 22 when it had rallied 414.04 points.
Intra-day, the gauge had scaled the 28,000-level for the first time since July 8.
Similarly, the 50-share Nifty recaptured the 8,400-level to hit a high of 8,471.65, before settling higher by 99.10 points, or 1.19 per cent, at 8,459.65.
Asian stocks ended higher after eurozone leaders reached an agreement over a third bailout for Greece. Key benchmark indices in Japan, Taiwan, Singapore and South Korea ended up by 0.96 per cent to 1.57 per cent.
China shares were trading higher as Beijing’s efforts to reverse a stock selloff appear to be holding up in mainland China, the Shanghai Composite rose by 2.39 per cent and Hong Kong index rose by 1.30 per cent.
European stocks were higher in their early trade on Greece deal as indices in Germany, France and the UK moved up by 0.65 per cent to 2.01 per cent.
Pramit Brahmbhatt, Veracity Group CEO said: “Local indices traded higher on the investors’ confidence and again closed on a positive note.”