Mumbai : Benchmark indices gave the Greece debt deal a big thumbs-up with the S&P BSE Sensex rising 300 points to 27961.19 driven by across-the-board buying activity and tracking upbeat global stocks. Intra-day, the gauge had scaled the 28,000-level for the first time since July 8.
Indices ended close to their day’s high, up over 1% as Greece, after a 17-hour discussion, reached an agreement with its creditors, consisting of an 86-bln-euro package over three years in return for strict reforms.
Though the rally was largely sentiment driven in line with upbeat global cues, hopes of a rate cut by the Reserve Bank on the back of lower-than-expected IIP numbers, buoyed the overall trading sentiment. A healthy growth in indirect tax revenues, which grew 37.5 % to nearly Rs 1.54 lakh crore in the first quarter of the fiscal, further boosted trading sentiment, traders said.
Despite a firm start, key indices gave up all its initial gains in the early session to slip below the key 8,400 mark briefly before rebounding smartly after the much awaited breakthrough in Greece debt crisis talks.
The 50-share Nifty fluctuated between a high of 8,471.65 and a low of 8,355.40 before ending at 8,459.65, showing a healthy gain of 99.10 points or 1.19 %.
Among sectoral indices, media topped its peers, surging by 3.12 %, followed by IT 1.86 %, auto 1.66 %, pharma, 1.28 %, FMCG 1.23 %, bank 0.93 %, energy 0.88 % and metal 0.43 %. Biggest index stock movers included HDFC, Infosys, ITC, HCL Tech, ICICI Bank and IndusInd. L&T, ONGC, Bank of Baroda and PNB were among the losers.
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ECB keeps emergency liquidity for Greek banks at current level
Frankfurt : The European Central Bank decided today to leave its stop-gap credit facility for Greece, known as Emergency Liquidity Assistance (ELA), unchanged at around 89 billion euros (USD 99 billion), an ECB spokeswoman said.
The decision by the ECB’s board of governors came after eurozone leaders hammered out a bailout package for Greece in marathon talks in Brussels overnight. The institution has kept its ELA cap unmodified since June 27, but last week tightened conditions as the leftwing government in Athens rejected reforms creditors had been demanding in exchange for aid.
The deal requires Greece to push through a raft of market-oriented laws by Wednesday as a sign of good faith. Only then will the 18 other eurozone leaders start negotiations over a three-year bailout worth up to 86 billion euros (USD 96 billion), Greece’s third rescue programme in five years. Until the package can take effect, the ELA is the only available source of financing for Greek banks and, by extension, the sole financial lifeline preventing the Greek economy from sinking. Before reviewing its position, the ECB wants the Brussels deal to be approved by the various national parliaments in the single currency, a European source said.
At least eight parliaments must vote on the deal, with the German lower house even voting on it twice.
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