Market Likely To Open In Green

Indian equities markets extended its winning streak to the seventh day as the monsoon progressed better than forecast. That led to hopes that the Reserve Bank might cut rates further in near future. Sentiments were also lifted by renewed expectation of a Greek deal following its Prime Minister bidding new proposals to Eurozone creditors to prevent default and exit. The Sensex index closed at 27730.21, up 414 points or 1.52% and the Nifty reclaim the crucial 8,300-level to finish at 8,353.10, up 128.15 points or 1.56%. The BSE Mid-Cap and Small-Cap index rose 1.49% and 1.4% respectively.

U.S. stocks moved broadly higher on Monday as all three major indices rallied amid positive developments in longstanding Greek Debt talks. The S&P 500 closed 12.86 points, or 0.6%, higher at 2,122.85. The Dow Jones Industrial Average gained 103.83 points, or 0.6%, to 18,119.78. The Nasdaq Composite 36.97 points, or 0.7% to 5,153.97, the highest level ever. Small-cap index Russell 2000 gained 6.78 points, or 0.5%, to 1,292.32.

Eurozone finance ministers welcomed the new proposals submitted by the Greek government today but said they needed to look at them more in detail and could reach a deal later this week. European stocks rallied, with Germany’s DAX and France’s CAC-40 both jumping 3.8%, while London's leading FTSE 100 index rose 1.7%. Greek stocks surged 9%. The pan-European Stoxx Europe 600 closed 2.3% higher.

Asian stocks rose, following a rally in global shares, as Greece's latest budget proposals raised hopes it would stave off a debt default and reach a deal with lenders later this week. China’s factory activity showed some signs of stabilising in June but still contracted for the fourth straight month. China's flash HSBC/Markit PMI rose to 49.6 in June but it still remained in contraction territory. In May, the final HSBC PMI print stayed in contraction territory for a third month at 49.2. The official PMI came in at 50.2 last month.  South Korea’s Kospi index climbed 1.33%, while Japan’s Topix index added 1.53%. Australia’s S&P/ASX 200 Index increased 1.25%. New Zealand’s NZX 50 Index traded flat. The Shanghai Composite lost 1.1%.

The SGX Nifty was up 8 points at 8,360. Indian markets are likely to open in green following positive trend seen in other Asian markets except China.