Sensex jumps 305 points on Moody’s outlook, Greek deal

Dalal Street posted its biggest daily gain in more than two months as investor sentiment turned positive amid a new debt package for Greece and ratings agency Moody's maintaining India's rating outlook as stable. The rally was further aided by growing hopes that the government would push through reforms with the required majority.

The Sensex opened higher and remained in the positive zone throughout before closing at 18,842.08, a rise 305 points or 1.65 per cent. The NSE 50-stock index, Nifty, shot up 91.55 points or 1.62 per cent to 2-month high of 5,727.45.

"The euro zone finance ministers, European Central Bank and IMF finally agreed to help Greece manage its debt paving the way for the release of the next tranche of aid. Adding to positive bias, domestically, DMK decided to support the UPA government in Parliament on FDI in retail sector which comes as a huge relief to the Manmohan Singh government," says Amar Ambani, Head of Research, IIFL.

Dipen Shah, Head of PCG Research, Kotak Securities, said. "Markets ended the day strong with benchmarks gaining more than 1.5 per cent. The signing of the Greek debt deal had a positive impact on sentiments. Moody's reiterated its positive outlook on India. Expectations were high that the government may be able to muster enough support on the multi-brand retail issue."

Meanwhile, snapping its five-session losing streak, the rupee gained 28 paise to 55.45 against the US dollar.

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