Rising support for Greece bailout parties sparks a rally on bourses

Commentary

oi-Sunil

By Sunil Fernandes

Published: Monday, May 28, 2012, 15:47 [IST]

An opinion poll that showed rising support for Greek bailout parties sparked a rally in stocks across the globe including India. The BSE Sensex closed the day higher by 199 points, while the NSE Nifty gained 65 points at 4985 points.

Shares rallied across the board with all sectors closing in the green. Banking stocks were in the limelight with State Bank of India and ICICI Bank rallying sharply.

Today's rally in stocks is likely to come as relief, for markets around the globe, though analysts believe that this could be a technical bounce. Shares of FDC rallied sharply by more than 4%, after the company announced a buyback of shares at Rs 110 per share.

In Europe the UK's FTSE, The German DAX and the French CAC were all trading higher. However, analysts warn that problems in Greece are likely to linger for sometime. Greece holds elections on June 17, 2012 and markets are eagerly watching the outcome to see if pro austerity parties return back to power.

Should that happen it could result in a fresh rally across the globe.

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