Markets cheer Greece deal

Sensex, Nifty gain about a per cent

Indian equities rose about a per cent on Monday, along with other global stocks, following a deal between Greece and its creditors. The deal followed marathon negotiations, which had kept financial markets on tenterhooks in the past few weeks.

Investor appetite improved further after Chinese stocks gained for a third day, amid more companies resuming trading, on better-than-expected export data.

The benchmark BSE Sensex gained 1.08 per cent, or 299.79 points, at 27,961.19, while the 50-share Nifty rose 99.1 points, or 1.19 per cent, to 8,459.65. Both the indices posted their biggest one-day gain in three weeks.

Meanwhile, Stoxx 600, the pan-European equity index, was up 1.6 per cent. Portugal’s PSI 20 Index and France’s CAC 40 Index were up two per cent. Among Asian markets, the Shanghai Composite gained 2.6 per cent, while Japan’s Nikkei 225 rose 1.6 per cent.

The gains in the Indian market were relatively muted compared to some other global markets, as domestic stocks were relatively less hit by turmoil in the euro zone.

“I think the markets need to move beyond Greece now,” said Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services. He added the market was looking at the Greece issue as being resolved, at least in the short term, and the focus would now shift to domestic triggers such as the interest rate trajectory.

The India VIX index, a volatility index, fell five per cent to 16.27.

“A crisis has been averted for the time being. India wasn’t majorly impacted by Greece. But it had definitely increased volatility. Hopefully, we will have some stability going ahead,” said Lalit Nambiar, senior vice-president and fund manager (equities), UTI Mutual Fund.

Foreign institutional investors net-bought shares worth Rs 528 crore on Monday, even their domestic counterparts sold shares worth Rs 172 crore, showed provisional data provided by stock exchanges.

Except ONGC and L&T, all Sensex components ended with gains. GAIL and HDFC were the biggest gainers, each advancing three per cent. The BSE mid-cap and small-cap indices gained 1.44 per cent and 1.27 per cent, respectively, outperforming the benchmark Sensex.

Experts said going ahead, earnings for the June quarter, the progress of the monsoon and government reforms would be important triggers for the Indian markets.