IT companies were the top gainers
Benchmark share indices gained for the seventh straight session after the progress of the monsoon eased concerns over rising inflation thereby rekindling hopes of a rate cut while the new proposal presented by Greece to avoid debt default also boosted market sentiment.
The 30-share Sensex surged 414 points to end at 27,730 and the Nifty gained 128 points at 8,353.
In the broader markets, BSE Midcap and Smallcap indices ended up 1.4-1.5% each. Market breadth ended strong with 1,740 gainers and 960 losers on the BSE.
"Markets witnessed renewed buying interest as well as short covering especially in banking shares ahead of the June F&O expiry.
"Further, sharp gains in European markets on expectations on the new proposal by Greece to avoid default also boosted sentiment," said Alex Mathew, Head of Research at BNP Paribas Financial Services.
"If the Nifty closes above 8,356 for the next two successive sessions we could see a target of 8,500," he added.
The Indian rupee trimmed early gains and was trading nearly unchanged at 63.54 to the US dollar compared to its previous close of 63.55.
Meanwhile, markets could turn volatile ahead of the expiry of June derivatives contracts on Thursday, June 25.
GLOBAL MARKETS
Most Asian markets ended with gains while European shares were trading higher amid expectations that the debt crisis in Greece would be resolved while merger and acquisitions in the telecom sector also boosted sentiment. The CAC-40 and DAX were up over 3% while the FTSE-100 was up 1.2%.
SECTORS & STOCKS
All sectoral indices ended in the green led by BSE Realty index which surged 5% followed by Bankex which gained 2.6% while NSE Bank Nifty gained 453 points or 2.5%.
Other gainers include FMCG and IT among others.
In the banking pack, ICICI Bank, HDFC Bank, Axis Bank and SBI ended up 1.8-3.5% each while mortgage lender HDFC gained 2.5%.
Infosys ended up 2.8%. The company's annual general meeting will be held later in the day sans its founding members. TCS was up 1.5%.
Tata Motors gained 1.7% after the company registered sales of 3,000 GenX Nanos in one month.
Tata Steel rose nearly 2% after employees of its UK subsidiary called off the one day strike scheduled for June 22 and has decided to negotiate on the pension scheme.
Lupin pared early gains and ended marginally down. The stock was included in the 30-share Sensex, replacing private sector electricity producer Tata Power.
Dr Reddy's Laboratories gained 1% after the launch of HAiROOTZ, the first hair growth supplement to be marketed in India as an over-the-counter (OTC) product by the company.
Reliance Industries which had surged over 12% last week witnessed profit taking after it topped the Rs 1,000 mark in intra-day trade today. The stock ended down 0.5%.
Other Sensex losers include, ONGC, Wipro and Bharti Airtel.
Among other shares, Indiabulls Real Estate surged 30% to Rs 55 after the company said its promoters will buy 10% stake in the property development company for Rs 538 crore.
Wockhardt gained 2.8% after the company announced that it has received final approval from the US Food & Drug Administration for marketing 5mg/5ml of Oyxcodone HCL liquid.
Rajesh Exports ended nearly 7% higher after the company said its board will meet on July 2, to mull an acquisition in Europe, in the same line of business.
