A spectacular recovery wipes off Greek ‘tragedy’ jitters for Indian markets!

The Nifty staged a spectacular comeback ending at a two-month high and closing firming above a crucial level as investors used the gap down opening as a window to buy beaten down stocks after the Greek referendum.

The Nifty ended the day at 8,520, adding 35 points and recovering from an intra-day low of 8,386 points. The gains on the Bank Nifty were more eye popping. The Index hit a low of 18,417 points but scaled up to 18,825 points, ending the day with a gain of 0.5 percent.

The Advance-Decline Ratio on the Nifty was 33:17 compared with a paltry 3:47 in the morning. On the BSE, the ratio stood at 1,788:1,000 at the end of trade.

Lots of things favoured the bulls today. A strong Dollar helped commodity prices head lower, which mean Crude Oil, India's top import, hit lowest level since mid-April. This pushed Oil Marketing Companies to higher orbits.

A firm Dollar also meant that the US Fed would be hesitant to raise interest rates immediately. This helped the run up.

Pharma and tech companies, both major exporters, shone brightly in trade. Dr. Reddy's and Cipla were the top gainers on the Nifty. They led 107 of their smaller peers higher, compared with just 27 drug stocks that lost ground on the BSE.

A similar if not more bullish trend was observed on textile stocks, led by Welspun india. 131 textile companies rose compared with just 54 that posted losses.

(Image Credits: pardaphash)