Markets to Open Higher on Greece’s Extension Deal

Finally the market broke the winning streak of straight seven days rally and closed in red on Friday. For last week, all global markets including Indian market were volatile on the Greek debt drama. On Friday, the Oil & Gas, IT and Banking stocks dragged the market and the market barometer BSE Sensex and NSE Nifty closed down by 0.78 and 0.69 per cent down at 29231 and 8834 respectively. the markets were down predominantly due to concerns over Germens decline for the Greeks extensions for the bailout.

Finally, the Greek debt and bailout drama was over and the Greece got an extension of four months for its bailout before its expiry on this month end. However, the Greece had requested to extend the bailout for next six months which was not accepted by the Eurozone officials. The European markets closed at 7 year highs on Friday. CAC 40 and DAX closed at 4831 and 11051 respectively during the Friday’s trading session. The UK FTSE closed marginal up by 0.38 per cent at 6915.

The US stocks too rallied on the optimism created due to the Greece’s bailout extension for next 4 months. The stocks closed at new record high on Friday. The S&P 500 was up at 2110 on Thursday and closed lower by 0.61 per cent. The Nasdaq Composite Index advanced by 0.63 per cent to 4956. The Dow Jones Industrial Average surged by 0.86 per cent to 18140.

On Monday morning, the Japanese markets were trading higher and touched fresh 15 years highs over global optimism. Further, the Australian markets too surged on global optimism. The Japanese Nikkei 225 and Australian ASX 200 were trading up by 0.85 and 0.51 per cent on Monday morning. While the Hang seng index was trading down by 0.46 per cent despite of its peers were trading in green.

In the morning, the SGX Nifty was trading up by 9 points at 8852.50. Today the budget session of the parliament will start and addressed by President Pranav Mukharjee. Further, taking cues from global optimism, the markets are expected to open in positive and expected to trade firm in green zone.