Sensex rallies 286 pts on Greece news, Bankex top performers

Finally, not only the European markets but the Indian market too sighed a breathe of relief after the second bailout package for Greece was announced yesterday. Euro zone announced a second bailout package worth Euro 109 billion (USD 157 billion) for the Greece on Thursday, which will reduce Greek debt by 24% of GDP.

The 30-share BSE Sensex shot up 286 points, to close at 18,722 and the 50-share NSE Nifty jumped 92 points, to end at 5,634, supported by rise in 46 shares.

The much awaited announcement has improved investors' sentiment. However, experts warn that the positive attitude will not last long.

Alastair Newton, senior political analyst at Nomura International is cautious that sentiments may have improved but clouds of concern is still hovering around Spain and Italy. He adds that looking at the high level of Greece debt GDP, ''another bailout cannot be ruled out.''

Newton further says, ''There are still big question marks over the sustainability of Ireland and Portugal's current sovereign debt levels.''

Meanwhile back on the home turfs, experts loook worried. Though the market rallied Devangshu Datta, Consulting Editor of Outlook said it was not a breakout. According to Datta, the market will look interesting if it moves past 5750 level - a 200 day moving average as it is still in a trading range of 5500-5700.