Sensex gains 1 pct, heads for biggest single-day gain in three weeks

MUMBAI (Reuters) - Indian shares rose more than 1 percent on Monday, heading for their biggest single-day gain in three weeks, 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.

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 percent in June compared to May's 5.01 percent.

 

"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.

Shah added corporate earnings and domestic data points would drive Indian markets hereafter.

The BSE Sensex rose 1 percent, while the Nifty gained 1.1 percent, heading towards their biggest single-day percentage gain since June 22.

Blue-chip stocks led gains with HDFC up 2.1 percent and ITC higher 1.8 percent.

HCL Technologies rose 3.5 percent and Infosys gained 1.23 percent.

Indian gas distributors also rose. Gujarat State Petronet gained 4.6 percent and GAIL (India) advanced 3.5 percent as authorities issued draft amendments for calculation as of natural gas pipeline tariff which is seen as positive.

(Reporting by Karen Rebelo in Mumbai; Editing by Subhranshu Sahu)