Sensex surges 300 points on Greek bailout deal

Domestic equity market rose more than 1 per cent on Monday as blue chips gained on rising risk appetite across global equities after euro zone leaders said there would be no "Grexit".

Euro zone leaders agreed on a roadmap to a possible third bailout for near-bankrupt Greece on Monday, but Athens must enact key reforms this week before they start talks on a financial rescue to keep it in the European currency area.

The key benchmark indices BSE Sensex and NSE Nifty closed 1.08 per cent and 1.19 per cent higher at 27,961.19 and 8,459.65, respectively.

Gaurav Jain, director, Hem Securities said, "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."

"It's important to see how the entire implementation will take place as far as Greece is concerned," said Gaurang Shah, vice-president at Geojit BNP Paribas.

Among the Sensex stocks, GAIL, HDFC, Maruti Suzuki, NTPC and Wipro gained 3.55 per cent, 3.19 per cent, 2.56 per cent, 2.50 per cent and 2.08 per cent, respectively.

Among the sectoral indices on the Bombay Stock Exchange, the BSE IT index closed 1.71 per cent higher at 10,330.30. It was followed by BSE TECk index (up 1.65 per cent), BSE Auto index (up 1.60 per cent) and BSE Healthcare index (up 1.28 per cent). However, the BSE Capital Goods index fell marginally 0.19 per cent to 18,392.96 and remained the only loser in the BSE sectoral indices.

Shah of Geojit BNP Paribas added corporate earnings and domestic data points would drive domestic markets from here onwards.
Overall market breadth remained strong as 1,789 stocks advanced on the BSE while 1,005 closed lower than their previous close.
Ongoing April-June earnings and June retail inflation data would be key for the near-term direction of the market.

A median forecast from a Reuters survey of 30 economists this week put inflation at 5.10 per cent in June compared to May's 5.01 per cent.

Shares of gas distributors also gained on Monday. Gujarat State Petronet gained 3.84 per cent and GAIL (India) advanced 3.55 per cent as authorities issued draft amendments for calculation as of natural gas pipeline tariff which is seen as positive.

(With inputs from Reuters)