Market Likely To Open In Negative

Indian equities markets ended slightly lower on Friday, but the market witnessed a second consecutive weekly gain on persistent buying from investors on hopes of rate cut from Reserve Bank of India (RBI) in view of above-average monsoon rains. India Meteorological Department (IMD) said in its daily monsoon update showed that the southwest monsoon has been further advanced into remaining parts of north Arabian Sea. The Sensex gained 495.67 points to close the week at 27,811.84, the Nifty surged 156.15 points to end the week at 8,381.10. The BSE Mid-Cap and Small-Cap index rose 1.89% and 1.66% respectively.

However, on Friday as private lenders retreated after the central bank’s stress tests showed a significant jump in bad loans for the sector. State-run lenders are still trailing the private sector banks in asset quality, with stressed advances at 13.5% as against 4.6% for the private sector banks. Under the baseline scenario, the RBI report estimates that public sector banks' gross NPAs will rise to 5.7% by the end of March 2016.

For Europe stock in last week speculating on a Greek resolution, it’s time to rethink the strategy. Over the weekend, DAX fell 522 points (-5.2%) and closed down 3.9%. The CAC was down 4.8% closing down a similar amount to the DAX.

The U.S. stock market ended mixed on Friday, posting a loss for the week, as investors digested earnings reports and awaited resolution on the Greece debt talks. The Dow Jones Industrial Average moved 0.3% higher, while the S&P 500 was essentially flat and the Nasdaq Composite fell 0.6%. For the week, both the Dow and S&P 500 fell 0.4% while the Nasdaq fell 0.7%.

The Japanese market opened sharply lower on Monday amid fears of a debt default by Greece following the breakdown in talks between that country and international creditors over the weekend. The benchmark Nikkei 225 Index is losing 368 points or 1.78% to 20,337, off a low of 20,190.08 in early trades. China’s market plunged in one of the sharpest sell-offs in years, accelerating a downturn this last week in what has been, for much of this year. China’s stocks still swung sharply between gains and losses, with the Shanghai Composite Index slipped 1.91% to 4,118, as investors weighed the central bank’s weekend interest-rate cut against declines in margin bets. South Korea's key Kospi index hit a one-week low amid a broad-based selloff.

Since SGX Nifty fell 118 points. Indian markets likely to open in negative due to Greece failed to clinch a deal with its international lenders over the weekend to avert a default.