Buoyed by the news of Greece fully repaying €769 million in bond coupons, FIIs bought domestic stocks on Tuesday, propelling the benchmark indices up by more than two per cent.
The Sensex was up 353.93 points (2.11 per cent) and the Nifty gained 108.25 points (2.15 per cent) to close at 17,099.28 and 5140.2 respectively.
All indices on the BSE and NSE were up while the volatility index was down 7.94 per cent (2.35 points) and closed at 27.25 points.
“The news about Greece came as a huge positive, especially when markets have declined 20 per cent since the start of 2011,” said Mr K. Ramanathan, CIO–ING Investment Management India.
“Though things are uncertain globally, India should do better from current levels as valuations are attractive.”
Analysts are also looking forward to the outcome of the US' two-day Federal Open Market Committee (FOMC) meeting on September 20 and 21 and the political debate on the US President, Mr Barack Obama's measures to cut deficit. FIIs bought equity worth Rs 319 crore in the net while DIIs sold equity for Rs 318 crore. Retail investors on the BSE were net sellers to the tune of Rs 79 crore