Nifty may not decline much as it stays above 8,200
In the previous week we had mentioned that Nifty, Sensex, Bank Nifty may come under pressure. Last week’s optimism was brought to a halt on Monday. In line with other Asian indices, the Indian indices too opened deeply in the red today, following a new crisis in Europe. Greece's European partners shut the door on extending a credit lifeline to Athens, leaving it facing a default, which could push it out of the euro. Greece shut down its banking system, ordering lenders to stay closed for six days starting today to avoid a run on the country's banks and its central bank moved to impose controls to prevent money from flooding out of the country. However, in the post-lunch session it showed a remarkable rally and recovered 60% of the days losses. Nifty crossed the crucial 8300 level and managed to stay above that for the remaining session.
NSE recorded a volume of 74.51 crore shares. India VIX rose 9.76% to close at 17.2975.
The weekly data released by the Ministry of Agriculture after trading hours on Friday showed a pick-up in planting of Kharif crops. This news pulled the FMCG stocks higher today.
The Reserve Bank of India (RBI) has clarified that its Governor Dr Raghuram Rajan had not suggested at a London Business School conference on 25 June 2015 that the world risked sliding into another Great Depression as reported by sections of the media. The RBI clarified that what Rajan had said at that conference was that the policies followed by major central banks around the world were in danger of slipping into the kind of beggar-thy-neighbour strategies that were followed in the 1930s. Rajan called for new rules of the game in the international monetary system, a call that he has made before and is gaining some traction.
India and Thailand signed a number of important agreements, including the double taxation avoidance treaty, and exchanged instruments of ratification on the extradition treaty inked in 2013, which provides for the legal framework for seeking extradition of fugitive offenders.
The financial crisis in Greece may have an indirect impact on India as it impacts the euro, Finance Secretary Rajiv Mehrishi said on Monday. He also said that India is monitoring developments after the breakdown in talks between Greece and its creditors but does not have a firm plan in place to deal with any significant fallout.
A new IMF study shows that Indian banks are faster in effecting a lending rate hike, but not so quick in raising deposit rates.
The RBI is likely to cut benchmark rate by 25 basis points in its policy meet on August 4 provided rains are normal, a Bank of America Merrill Lynch report says.
Larsen & Toubro said it has received orders worth Rs 2,035 crore across various business verticals in June 2015. The stock rose 0.44% to close at Rs 1787.80 on the BSE.
Tech Mahindra fell 7.19% to close at Rs484.35 on the BSE. It today hit its 52-week low after the company said in its business update its Q1 results have some headwinds and tailwinds, which could see a risk of marginal decline in both revenue and EBITDA (earnings before interest, taxation, depreciation and amortization) margin on a sequential basis.
US indices had mixed closing on Friday.
US consumer sentiment rose to a final June reading of 96.1, reaching a five-month high after a decline in May, according to reports on the University of Michigan gauge.
Asian indices closed in the red today. Shanghai Composite was the top loser which fell 3.34%.
China's central bank cut interest rates on Saturday and reduced the reserves that certain banks must hold.
European indices deeply were in the red. US Futures too were trading lower.
The European Commission Sunday offered Greek voters a 10-point plan for bailout requirements, urging Greece to stay in the euro area.