Sensex shows weekly gain of 160 points on global cues

The Sensex recovered by 160 points to finish at 18,722.30 due to fag-end buying from operators in view of good monsoon rains, easing food inflation and agreement of European Union-International Monetary Fund (IMF) on a bailout deal for debt-ridden Greece.

The euro zone countries and the IMF agreed to give Greece a second bailout worth Euro 109 billion ($155 billion), on top of the Euro 110 billion granted a year ago, in a bid to avert default by Athens. The deal gave a much needed sighs of relief in global markets.

US stocks rallied as the rescue deal boosted financial stocks that were battered in recent weeks by fears of a European debt crisis.

Meanwhile, food inflation fell to 7.58 per cent in the week ended July 9, from 8.31 per cent in the preceding week.

Banks see another rate hike by RBI on Tuesday

However, Finance Ministry's statement that headline inflation will remain "sticky" till December and high export growth may not be sustained due to euro zone crisis weighed on the market sentiment, a broker said.

Expectations of a further rise in key interest rates by the apex bank in its first quarter monetary policy meeting on July 26, continued to daunt the market sentiment.

Sensex resumed higher at 18,592.19 and hovered in a range of 18,765.60 and 18,415.36 before finishing the week at 18,722,30, showing a net rise of 160.38 points, or 0.86 per cent, from its last last weekend's level.