Markets in Asia and Europe continued to provide the much needed momentum. In Asia almost all of the markets, except the Shanghai Composite ended higher. In Europe the UK'S FTSE, the German DAX and the French CAC were all trading higher at 3 pm IST.

Domestically, the rally was led by the metals pack, which saw Sterlite Industries gaining more than 4% and Sesa Goa trading higher by more than 3%. Other gainers in trade today were Maruti Suzuki and Axis Bank.

Today's rally was also a result of renewed optimism over rate cuts by the Reserve Bank of India, which is slated to meet later this month to decide on repo rate cuts.

All eyes would now be focused on the results of elections in Greece. If the pro-austerity parties are able to form a government it could lead to a fresh rally in stocks.

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