Markets to Experience Volatile Session

Domestic market started the week quietly and closed flat on the bourses. The Indian market opened in green on Monday morning and showed a volatile movement. Further, we have experienced some profit booking too in banking, consumer durables, healthcare and oil & gas stocks and their respective indices were down by almost 1 per cent each. Tuesday was holiday for the market due to “Mahashivratri”.

The European shares recovered marginally on Tuesday after considerable correction on Monday after a talk collapse of deal negotiations between the Greece government and its international creditors on Monday. However, this has made European ministers to increase the pressure on the Greece to accept the debt deal on Tuesday. European Central Bank officials are scheduled to hold a regular meeting on Wednesday. The officials are expected to discuss about emergency liquidity assistance, which was recently increased for Greek banks. This discussion will certainly add pressure on the Greece government and to accept the last minute deal.

The FTSE 100 closed higher by 0.6 per cent to 6898 due to easing of the inflationary pressure in UK. However, the German barometer DAX closed marginal down by 0.25 per cent and the French index CAC 40 closed flat.

The US markets too showed marginal gains after Monday’s correction on Greece issue. The Greece is expected to ask for another six months extension for its debt obligations. Taking optimism from this news, the S&P 500 touched 2100 first time on Tuesday and closed higher by 0.16 per cent. The Nasdaq Composite Index advanced by 0.11 per cent to 4899. The Dow Jones Industrial Average gained by 0.16 per cent to 18048.

On Wednesday morning, the Asian market too trading in positive taking cue from global markets. The Japanese market i.e. Nikkei 225 index was too trading higher by 0.91 per cent at 18150 taking cue from news flows on Greece’s debt extension. The Australian ASX 200 index was too trading higher by 0.58 per cent on global news flow supported by the earnings and merger news in Australia. However, the Hong Kong shares were trading quietly on Wednesday morning and the Hang Seng index was marginal up by 0.18 per cent.

In morning, India’s premarket barometer SGX Nifty was trading higher by 14.50 points at 8854. We expect markets to open marginally higher in morning taking positive cues from global markets. However, we may experience the volatile session over the Greece debt issue.