The Bombay Stock Exchange’s benchmark index Sensex surged over 300 points in afternoon trade on Monday, tracking markets in Europe, which also gained after leaders reached a deal with Greece to negotiate a third bailout and keep the country in the euro zone.
Around 2:00pm, the Sensex was up 331.10 points or 1.20% at 27,992.50 points and the broader NSE Nifty index was at 8,461.75, up 101.20 points or 1.21%.
Europe stock markets were also up following euro zone’s deal with Greece. In early trade, Germany’s DAX was up 1.1%, London’s FTSE 100 gained 0.7% and France’s CAC 40 also rose 1.3%.
"Euro summit has unanimously reached agreement. All ready to go for ESM (European Stability Mechanism) programme for Greece with serious reforms and financial support," European Council president Donald Tusk announced on Twitter.
Most Asian markets also closed in the green, with Hong Kong’s Hang Seng gaining 1.3% and Japan’s Nikkei Stock average rising 1.6%.
On the BSE, all the sectoral indices were trading in the green, with the BSE Information Technology index the highest gainer at 1.55%.
GAIL was the biggest gainer on the Sensex, up 3.7%. Technology stocks Infosys, Tata Consultancy Services and Wipro were all up around 1.5%. Pharma stocks were also in demand, with Sun Pharma and Cipla gaining more than 2%.
The positive developments in Greece have boosted market sentiments, say analysts. However, looking ahead, the focus back home will shift to quarterly earnings of companies, where analysts are expecting another subdued quarter. Market men will also keep a watch on CPI (consumer price index) inflation data, which will be released later in the evening.