The BSE Sensex and NSE Nifty ended more than a per cent higher on Monday with blue-chips leading the gainers following across-the-board buying after Greece reached a deal with its European creditors that avoided an exit from the euro.
Sensex rallied 299.79 points to settle at 27,961.19, a rally of , or 1.08 per cent, its biggest single-session gain since June 22 when it had rallied 414.04 points. 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.
The stock markets surge was also influence by the hopes of a rate cut by the Reserve Bank in the wake of weak IIP numbers. A higher closing at other Asian markets and a better opening in European markets, which jumped up to 3 per cent, also had a positive impact on the stock markets.
The 30-share index regained the psychological 28,000-mark — for the first time since July 8 — by surging 340.43 points, or 1.23 per cent, at 28,001.83 in afternoon trade.
The Sensex had rallied 130 points in early trade on buying in healthcare, oil & gas, consumer durables, IT and technology sectors amid expectations of an RBI rate cut and firm Asian cues.
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.
Gail India (3.55 pc), HDFC (3.19 pc), Maruti (2.56 pc), NTPC (2.50 pc), Wipro (2.08 pc), Hindalco (1.86 pc), Cipla (1.80 pc), M&M (1.65 pc), Sun Pharma (1.58 pc), TCS (1.48 pc), ITC (1.48 pc), Infosys (1.39 pc), Tata Steel (1.25 pc), SBI (1.13 pc), Hero MotoCorp (1.09 pc), Bajaj Auto (1.07 pc), Lupin (1.03 pc), Vedanta (1.03 pc), and HUL (1.02 pc) were among the major gainers. ONGC fell by 1.02 per cent.
Among the BSE sectoral indices, IT rose by 1.71 per cent followed by teck 1.65 per cent, Auto 1.60 per cent, Healthcare 1.28 per cent, Oil&Gas 1.27 per cent, Power 1.26 per cent and FMCG 1.14 per cent.
The market breadth remained strong as 1,789 stocks gained, 1,005 declined and 126 ruled steady. Total turnover fell to Rs 2,545.13 crore from Rs 2,870.13 crore on last Friday.
What experts are saying on stock markets surge today
Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd
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. India’s VIX has reduced today, now the domestic focus will shift to Q1FY16.
Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
Though Indian markets turned steeply higher as soon as positive news on Greece crisis flowed in, it is uncertain if the crisis had built in so much premium into Indian markets, to warrant such a release rally. This supports the argument that buyers are waiting on the side lines, looking for cues to enter Indian markets. IIP figures continued positive growth, despite the slow down, but it would be the inflation figures that is likely to give momentum to further moves, as RBI’s rate announcement is approaching.
Gaurav Jain, Director, Hem Securities
Markets surged as European Union bails out Greece. European leaders in Brussels have reached a third bailout deal for Greece after more than 17 hours of discussion on the subject of reforms and more financial aid for the near-bankrupt country. Earlier markets opened on a week note on the back of week IIP numbers announced on Friday after market hours.