The benchmark BSE Sensex today fell by 84 points to 27,811.84 as banking stocks plunged after RBI’s stress test showed that deterioration in banks’ asset quality is likely to continue for a few more quarters.

“RBI’s stress test results poured water on the banking sector which had been buoyant following capital infusion plans,” said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas.

Sentiment was also hit after Greece failed to reach an agreement with its creditors ahead of a debt deadline, equity brokers said.

However, reports that monsoon has covered the entire country, except western Rajasthan, several days before its expected date lifted market mood to some extent, they added.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd
Global factors continue to drive the market at the start of the new expiry. Market will be eyeing on how the talks on Greece concerns evolve in the coming days. As far as India is concerned, while the global risk diminishes, market momentum will depend on positive FII inflows, government spending and lower interest rate.

The 30-share Sensex after opening in negative zone at 26,880.72 continued to slide as selling pressure gathered momentum amid a weak overseas trend. It touched a low of 27,675.16 before winding up 84.13 points or 0.30 per cent down at 27,811.84. The index touched a high of 27,921.86 intra-day.

“Realty and IT stocks continued to piggy back on… announcement of three flagship schemes (by the Prime Minister yesterday),” James said.

The NSE Nifty ended 16.90 points or 0.20 per cent down at 8,381.10 after shuttling between 8,408.55 and 8,339.70 intra-day.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd
The markets today remained sideways without major cues. The global markets were marginally down over the Greece concern. Investors are cautious and at the same time expecting a deal that would be reached on Monday or Tuesday.  The low roll-over (59%) of Nifty futures were also indicating the cautious mood of investors.
Nifty closed at 8381 down around 16 points. The market breadth changed to negative as there were seen 1182 stocks advancing against 1493 stocks declining. The Nifty volatility index, India VIX stood at 15.7600 down around 1.06%.
Capital goods and Metal were the losers in the sectorial front, closed down around 1.15% and 0.95% respectively whereas Consumer Durables and IT were the gainers, closed up around 1.57% and 1.34% respectively.
In the stocks’ front, the major gainers were HCL Tech and Indusind bank which closed up around 3.33% and 1.83% respectively whereas the selling was seen in Cairn and Gail, which closed down around 3.17% and 3.09% respectively.
The FIIs were net buyers in the cash market segment on 25 June 2015, Thursday, bought shares worth Rs 280.21 crore. The DIIs on the other hand were sellers on 25 June, sold shares worth Rs 8.45 crore in the capital markets segment.
The European markets were trading lower as the euro leaders told their finance ministers to find a solution to save Greece from default.  The US index futures were trading mixed.

Both the Sensex and the Nifty indices posted their second-straight weekly gains by rising 495.67 points (1.81 pc) and 156.15 points (1.89 pc), respectively.

Reserve Bank of India’s Financial Stability Report yesterday said that gross non-performing assets (NPAs) in the banking system have grown to 4.6 per cent at the end of March this year from 4.5 per cent in September.

Reacting to the news, the BSE banking index fell by 0.74 per cent. Major losers from the Sensex were ICICI Bank, HDFC Bank and Axis Bank — falling by up to 1.35 per cent.

Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
Realty and IT stocks continued to piggy back on yesterday’s announcement of three flagship schemes, but RBI’s stress tests results poured water on banking sector which had been buoyant following capital infusion plans. Incidentally, volumes in FIIs’ interest continue to be in F&O, in a way hinting at the hedging approach taken ahead of Greece’s debt payments, and the with heightened prospects of El Nino playing havoc with monsoons in the first half of July.

Meanwhile, RBI Governor Raghuram Rajan has expressed concern that the world may be slipping into the kind of problems of the depression of the 1930s and an international consensus was needed to be built over time. Globally, Shanghai closed 7.4 per cent down on fears that the Chinese stocks were overvalued after a year-long advance. European market was also down in their early trade.

Key indices from Japan, Hong Kong, Singapore and Taiwan ended lower by 0.15 per cent to 1.78 per cent, while South Korea’s Kospi rose 0.25 per cent.

From Europe, France, Germany and the UK’s indices were down in the range 0.40 per cent to 1.00 per cent.

Market View by Gaurav Jain, Director, Hem Securities
Indices failed to hold the recovery through the day on the back of global market weakness as investors stay cautious ahead of Greece debt payment outcome. Further, indices witnessed wild swings between positive and negative terrains on the first day of longer July series.

Pramit Brahmbhatt, Veracity Group CEO said: “During the day local indices further tumbled down mainly after the Reserve Bank of India’s stress tests unexpectedly showed private banks may probably see a major jump in bad loans.”

From 30-share Sensex, 17 scrips ended lower.

Major losers were GAIL (3.19 pc), Vedanta (2.70 pc), Bharti Airtel (2.32 pc), BHEL (2.15 pc), HDFC (1.57 pc), Tata Steel (1.55 pc), Larsen (1.49 pc), ICICI Bank (1.35 pc) and ITC (1.31 pc).

On the other hand, TCS rose by 1.66 per cent, followed by NTPC 1.55 per cent, Infosys 1.51 per cent, Bajaj Auto 1.35 per cent, Cipla 1.34 per cent, Maruti 1.06 per cent and Dr Reddy’s 1.02 per cent.

Among the BSE sectoral indices, capital goods fell by 1.11 per cent, metal 0.91 per cent, oil&gas 0.84 per cent, bankex 0.74 per cent and power 0.60 per cent, while consumer durable rose by 1.60 per cent followed by IT 1.36 per cent, realty 0.94 per cent and teck 0.73 per cent.

The market breadth turned negative as 1,489 stocks ended in the red, 1,185 closed in the green and 121 ruled steady. Total turnover rose to Rs 3,055.90 crore from Rs 2,555.87 crore yesterday.

World Market: Stocks fall before crunch weekend for Greece

Reuters – Global stocks fell on Friday as equity investors sought to cut exposure to risk after Greece and its creditors again failed to resolve their differences, paving the way for a last-ditch effort on Saturday to avert a default.

Currency and bond markets took a more cautious stance, driven by expectations that negotiators could still “pull a rabbit out of the hat” – as one strategist put it – before a Tuesday deadline when Athens has to repay 1.6 billion euros ($1.8 billion) to the International Monetary Fund.

“The collapse of talks again on Thursday at the eurogroup level… means that any deal before the end of play on Friday is extremely unlikely”, Craig Erlam, senior market analyst at OANDA in London, said in a note.

“By the time the markets reopen next week, Greece may have either secured a deal or accepted default to the IMF… with all this in mind, I expect to see significant risk aversion this morning with investors preparing for fireworks over the weekend.”

If default cannot be averted, participants at Saturday’s meeting are expected to start preparing a “Plan B” to protect the euro zone from financial market turmoil.

The pan-European FTSEurofirst 300 index was down 0.7 percent at 1,563.62 points by 0803 GMT. The MSCI index of world shares fell for a third day, down a quarter of a percent at 433.19 points.

The one stock market appearing driven by factors other than Greece was China’s, which posted some of its worst losses in years as investors worried that the economy is flagging.

In currency markets, where the impact of news on Greece has been less clear, the euro trod water at $1.12085, stuck within a tight $1.1150-$1.1250 range for a third session.

Ten-year Bund yields, which set the standard for euro zone borrowing costs, fell 1 basis point to 0.85 percent. Yields on lower-rated euro zone bonds in Italy, Spain and Portugal – the three countries seen most vulnerable to spillovers from the Greek crisis – were stable.

“The market still thinks either the EU or Greece are going to pull a rabbit out of the hat at the last minute,” said Nick Stamenkovic, bond strategist at RIA Capital Markets. “Don’t underestimate the Europeans. Europe has always surprised and the market thinks it’s going to do it again.”

SHANGHAI SLIDE

Earlier, Chinese stocks, which often march to their own drum beat, sank as investors stampeded out of a market amid increasing signs the country’s eight-month-long bull run is running out of fuel.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 7.9 percent – the biggest drop in seven years – while the Shanghai Composite Index skidded 7.4 percent.

Further falls in China stocks “will send ripples throughout Asian markets,” investment advisor Rivkin said in a note.

Fallout from Greece pressured shares elsewhere in Asia. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1 percent in late afternoon trade, though still on track for a small weekly rise of 0.2 percent.

Japan’s Nikkei ended down 0.3 percent. Despite household spending rising more than expected, inflation has remained flat, keeping alive expectations for more central bank stimulus later this year.

In commodities trading, Brent crude edged up to $63.41 a barrel while U.S. crude eased, with both stuck in tight ranges as investors focused on Greece.

“Traders and investors are very much on tenterhooks on the outcome (of talks on Greece),” said Ben Le Brun, market analyst at OptionsXpress in Sydney.