Markets reel under pressure on Grexit fears
06/07/2015 14:41

Indian markets continued to trade in tight range in the negative terrain during the late noon trading session with the frontline benchmarks trading below their crucial levels as investors remained cautious on Greek voters’ rejection of more austerity demands from creditors, fueling fears that the country will crash out of the Eurozone.

At 14:22 hours, the BSE benchmark was trading down by nearly 10 points at 28084.82, the NSE Nifty was quoting 17.35 points lower at 8467.55.

Selling pressure on the D-Street persisted as fear of Grexit loomed large after Sunday’s referendum results, where 61 per cent of Greeks voiced against further spending cuts and tax hikes imposed by the country’s creditors, pushing Greece into an economic unknown.

Back home, the investors remained on the sidelines ahead of the June quarter corporate earnings season set to begin this Thursday. Speculation that the June quarter may be yet another quarter of tepid earnings for India Inc. also pulled back domestic sentiment.

Major show spoilers on the D-street included Vedanta Ltd. (Rs. 163.30,-4.31%), Tata Motors Ltd. (Rs. 428.40,-1.14%), Hindalco Industries Ltd. (Rs. 109.30,-1.13%), Tata Steel Ltd. (Rs. 298.15,-0.93%), Infosys Ltd. (Rs. 981.00,-0.90%), among others.

However some buying interest was seen in Dr. Reddy's Laboratories Ltd. (Rs. 3704.95,+3.45%), Cipla Ltd. (Rs. 651.80,+3.23%), Hero MotoCorp Ltd. (Rs. 2613.10,+1.37%), Tata Consultancy Services Ltd. (Rs. 2627.10,+0.86%), Mahindra & Mahindra Ltd. (Rs. 1321.35,+0.69%), among others.

Among the thirteen sectoral indices, metal index was top loser and was trading at 9152.6 down by -87.17 points or by -0.94%. Vedanta Ltd. (Rs. 163.20,-4.37%), NMDC Ltd. (Rs. 115.30,-2.04%), Jindal Steel & Power Ltd. (Rs. 83.20,-1.65%), Hindalco Industries Ltd. (Rs. 109.05,-1.36%), Tata Steel Ltd. (Rs. 297.85,-1.03%),.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total 2771 shares traded, 1610 shares advanced, 1048 shares declined while 113 remained unchanged.

On the global front, Asian peers closed the day on a negative note as an outright rejection of further austerity by Greece cast doubts over the country’s euro future, curbing the lure for risky assets. Further, European counters have made an awful start with CAC, DAX and FTSE all trading with a deep cut in red.