"Markets ended the day strong with benchmarks gaining more than 1.5%. The signing of the Greek debt deal had a positive impact on sentiments. Asian markets traded higher and the European indices also opened in the green. Moody's reiterated its positive outlook on India. Also, expectations were high that, the Government may be able to muster enough support on the multi-brand retail issue.
Telecom stocks continued to attract buying on news that, RBI has relaxed the external commercial borrowing (ECB) policy for the 2G spectrum auction. Metal stocks were higher post the signing of the Greek deal and increase in LME prices. While the benchmarks performed strongly, there were also significant stock-specific gains in some of the mid-cap stocks.
The next few days will be very important from the reforms perspective. Apart from reforms, markets will focus on developments on the 'fiscal cliff' issue in US, IIP / inflation data and on the rate decision from the RBI."
Dipen Shah, Head of PCG (Private Client Group) Research, Kotak Securities
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