The BSE Sensex closed the day higher by 271 points to end at 16949 points, while the NSE Nifty closed the day higher by 83 points. European markets saw a smart rally in trade today with the French CAC, German DAX and UK's FTSE all gaining more than 1%.

Stock prices rallied across the board with all sectors gaining ground. Tata Motors, Grasim and Reliance Infrastructure were among the top gainers in trade today.

Markets will now likely await the outcome of the Greece elections which are to be held on Sunday and any possibility of the anti-austerity parties forming a government would pose fresh threats for the markets.

Also, the markets will take cues from what the Reserve Bank of India does at its review of the monetary policy to be held on Monday.

Markets are factoring a 25-50 basis points cut in the repo rate. A disappointment on this front could lead to a fresh sell off in stocks.

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