Markets to See Volatile Session over Global Cues

Yesterday, the domestic markets saw some positive action on June month F&O expiry despite of Greece debt issue lingering. The indices Capital Goods, Bankex and Auto ended at the higher levels. The Nifty ended 37 points higher at 8398 and Sensex was up by 166 points at 27895. The advance-decline ratio ended on the same note on both sides by closing. On the NSE, 1343 shares closed in green, while 1317 shares ended the day in red. Interestingly, the 11 out of the 13 sectoral indices ended in the green. Capital Goods was the top gainer, up by 369 points after the Larsen & Toubro wining a big petroleum order from ONGC. Bankex and Auto were 160 points higher, while Oil & Gas went up by 94 points. Mid-Caps and Small-Caps also provided good support and closed more than 50 points up. However IT and FMCG remain in stress.

On the European front, the Greece’s creditors rejected some of its proposals and want some credible proposals for further bail out. The creditors also expressed that they will force their proposals if Athens was unable to come out with such. One of its creditor, International Monetory Fund said, Greece will have to pay immediately its arrears if its fails to make USD 1.7 billion debt repayment due on June 30. However, the European markets closed almost flat on Thursday. The German stock index DAX and French stock index CAC managed to closed flat with 0.02 and -0.07 gains respectively. The UK stock index FTSE 100 closed down by 0.54 per cent.

The US markets opened higher on yesterday, taking optimism from the unbeat economic data showed that consumer spending in May registering the biggest gain in six years. Further, the jobless claims remained at 15 year lows. However, the optimism in US markets faded later in the day. The US stock indices were closed down and the Dow Jones, S&P 500 and Nasdaq closed -0.42, -0.30 and -0.20 per cent respectively. Today is big day for US markets as the Russell Indices go through their annual routine of adding and removing stocks. A massive amount of money is linked to these indices and the index funds that track these benchmarks may buy or sell stocks on Friday.

Today morning, the Asian markets were down over the European drama. The Japanese stocks extended its yesterday’s losses as the investors became cautious over Greece debt drama. Further, the Chinese stocks continue to slide further over expectation of bubble burst in Chinese economy. The Australian stocks were too trading in losses on the Friday morning taking negative cues from the European markets. Today morning, the Japanese index Nikkei 225, the Hang Seng index and the Australian ASX 200 were trading down with 0.44, 0.98 and 1.45 per cent losses on bourses.

The Indian premarket barometer SGX Nifty was trading marginal down with 0.38 per cent losses. We too expect markets to open flat with expected volatile session and negative biased over Greece debt issue.