Market Outlook: BSE Sensex, NSE Nifty to open on a cautious note

By: | Updated: July 8, 2015 8:59 AM

BSE Sensex and NSE Nifty to open on a cautious note taking its cue from global market.

bse sensex, NIftyBSE Sensex and NSE Nifty to open on a cautious note taking its cue from global market. (Reuters)

BSE Sensex and NSE Nifty to open on a cautious note taking its cue from global market.

Today, the markets are likely to get a gap-down start tailing the feeble regional cues amid continuing Greece debt crisis.

Euro zone members have given Greece until the end of the week to come up with a proposal for loans.

The metal pack is likely to suffer most on global rout, despite the rating agency Moody’s report that Indian base metals industry is expected to grow by 8-10 percent annually over the next three years on the back of increased demand from power, construction and automotive sectors.

However, there will be some support to the market with the Department of Industrial Policy & Promotion seeking help from the World Bank for its ambitious task of climbing into the top 30 of the World Bank’s ease of doing business rankings in three years.

FII’s too will be hoping a better deal with the report that Justice AP Shah committee looking into the issue of levying minimum alternate tax (MAT) on foreign portfolio investors (FPI) is expected to submit its report by the end of this month.

Asian shares tumbled on Wednesday and the safe-haven yen rallied as Chinese stocks remained in a tailspin, shaking investors already rattled by Greece’s debt crisis.

The drop in China extended a savage correction that has clipped 30 percent off Chinese shares since mid-June, threatening a new blow to the country’s already slowing economy despite a slew of market support steps from Beijing.

Japan’s Nikkei stock index fell 1.5 percent, roiled by both China’s dent to regional sentiment and the stronger Japanese currency.

Shanghai’s benchmark composite index was down 6.4 percent, while the CSI300 index of the largest listed companies in Shanghai and Shenzhen slipped 6.7 percent.

Australian shares fell on Wednesday amid concerns about an equity rout in China and fresh doubts that Greece can reach a bailout deal with Europe.

US stock futures were down 0.6 percent, suggesting that the gloomy mood might continue throughout the global session even after Wall Street’s major indexes closed higher on Tuesday.

Euro zone members gave Athens until the end of this week to propose reform measures in order to secure the funding it needs to stay in the euro zone.

Investors fear Greece’s financial woes, if it fails to reach a deal with its lenders, could spread to other southern European nations. These concerns grew when the European Central Bank increased the haircuts on the collateral it demands from Greek banks even as it maintained its emergency liquidity funding for them.

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