Stock markets did get affected by Greece’s ‘no’ to euro zone bailout conditions and fell in early trade but again rebounded handsomely in late-afternoon trade, with the benchmark Sensex rallying 115.97 points to end at 28,208.76 while Nifty recapturing the crucial 8,500-level.Financial markets slipped into a bit of a turmoil after Greek voters overwhelmingly rejected the bailout package from the country’s creditors, which set off panic among investors here.
“Indian markets are resilient against Greece crisis. Furthermore, strengthening of the rupee and renewed buying interest of foreign portfolio investors boosted sentiment to shut the day on a firm note,” said Gaurav Jain, Director, Hem Securities.The 30-share Sensex started off sharply lower at 27,857.2 and swayed between 27,774.8 and 28,235.31 before ending at 28,208.76, a gain of 115.97 points, or 0.41 per cent. The broader Nifty, too, climbed 37.25 points, or 0.44 per cent, to settle at 8,522.15.
The major index gainers included Dr Reddy’s (3.64 per cent), Cipla (3.35 per cent), HeromotoCorp (1.34 per cent), TCS (1.37 per cent) and lupin (1.05 per cent).The key losers were Vedanta (down 4.45 per cent), Hindalco (1.36 per cent), NTPC (0.76 per cent), Tata Steel (0.73 per cent) and Infosys (0.65 per cent). Of the 30-share Sensex pack, 19 ended in the green while 11 finished lower.
The key indices staged a remarkable turnaround towardslate-afternoon deals, driven by value buying in frontline blue chips and some bouts of short-covering.Investors also factored in positive comments from policy makers and solid macro data as the Government’s decision for higher spending to propel the economy did the trick, a broker said.
“...Indian equity market continues to outperform despite increased global risks in the last couple of weeks. The likely increase in government spending, a possible rate cut and fair numbers for Q1 FY16 are providing hope for Indian markets,” said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.