Sensex up 286 points on global rally post Greece's debt bailout

The Bombay Stock Exchange (BSE) Sensex shot up to a 2-week high of over 18,722 today, up 286 points, as investors bought blue chips across sectors buoyed by a global rally post the bailout of debt-laden Greece by European Union and IMF.

Overall, 12 of the 13 sectoral indices closed in the green, with bankex, teck, auto, capital goods, IT and Oil & Gas leading the pack. Only consumer durables ended in the red.

The $155 billion Greek debt bail out, announced late last night, was the second a year aimed at averting total default by the country and containing the ripple affect across several euro-zone nations.

Uncertainty over high debts in euro-zone nations had dampened investor sentiment worldwide and the deal provided the much needed relief. US stocks too rallied yesterday.

Back home, after yesterday's steep fall, Reliance Industries - with heaviest weight on the Sensex - shot up 1.49 per cent ahead of the first quarter earnings to be announced on Monday. The second-heaviest Infosys gained 2.10 per cent.

The BSE 30-share bellwether index, Sensex, opened on a high note and remained in the positive terrain throughout the day - ending at 18,722.30, up 286.11 points or 1.55 per cent.

The broad-based NSE 50-issue Nifty also rebounded by a sharp 92.35 points or 1.67 per cent to 5,633.95.

"The Indian market rallied on news of European leaders approving bailout package for Greece," Geojit BNP Paribas Financial Services Research head Alex Mathews said.

He further said that Dalal Street moved northwards buoyed by robust quarterly performance of Axis Bank coupled with short-covering ahead of July Futures & Options expiry next week.

CNI Research CMD Kishor P Ostwal said the market was already in the oversold position and the passing of the bailout plan boosted the sentiment across the globe.

Besides, short-coverings ahead of the expiry of July contract next Thursday too aided the sentiment, he added.

Key indices from China, Hong Kong, Japan, Singapore, South Korea and Taiwan finished up between 0.18 per cent and 2.08 per cent. European markets too displayed a firm trend in their afternoon trade while US stocks futures indicated positive opening today after yesterday's gains.

In all, 27 of 30 the Sensex stocks closed with gains, while DLF, Hindalco and Jindal Steel ended with small losses.

Bharti Airtel was the top gainer - up 3.99 per cent, followed by RCom (3.43 per cent), M&M (2.98 per cent), ICICI Bank (2.61 per cent), Tata Motors (2.18 per cent), Infosys Tech (2.10 per cent), L&T (1.98 per cent), Tata Steel (1.98 per cent), Cipla (1.77 per cent), BHEL (1.72 per cent), SBI (1.70 per cent), Hero Honda (1.59 per cent), RIL (1.49 per cent), HDFC (1.35 per cent), ONGC (1.19 per cent), HDFC Bank (1.03 per cent) and TCS (0.90 per cent).

Among sectoral indices, Bankex spurted by 2.14 per cent, Teck (2.06 per cent), Auto (1.76 per cent), CG (1.72 per cent), IT (1.55 per cent) and Oil & Gas (1.45 per cent).

The total market breadth at BSE turned positive as 1,715 stocks ended in the green, while 1,188 finished in the red. The turnover rose to Rs3,187.31 crore from Rs2,717.91 crore yesterday.