Indian Market Likely To Open Flat

The BSE Sensex witnessed a gap down opening and fell around 500 points, amid concerns that China’s equity rout that has erased more than USD 1 trillion in value over the past two weeks (i.e. shaved off 30% from its high) may affect the global economy. However we believe in some ways, India may stand to benefit as the country will benefit from lower commodity prices, especially crude oil, and a possible re-routing of global funds away from China. The Sensex lost 536 points intraday, before closing at 27687.72, down 483.97 points. The Nifty shed 147.75 points to 8363.05 after seeing an intraday low of 8341.40. The BSE Midcap and Smallcap indices slipped 1.3% each.

U.S. stocks closed sharply lower on Wednesday as technical issue brought trading to a halt on the New York Stock Exchange for more than three hours. Investors grappled with a precipitous selloff in Chinese shares and nervousness over unresolved Greece debt crisis. The S&P 500 lost 34.65 points, or 1.7%, to close at 2,046.69, its lowest closing level since March. The Dow Jones Industrial Average dropped 261.49 points, or 1.5%, to 17,515.42 and the Nasdaq Composite declined 87.70 points, or 1.8% to close at 4,909.76.

European stocks closed mostly higher Wednesday following four straight sessions of losses, as Greece requested a third aid package from the eurozone’s bailout fund that would allow the debt-burdened country to stave off bankruptcy. The Stoxx Europe 600 SXXP edged up 0.04% to 372.88. Germany’s DAX 30 rose 0.7% to close at 10,747.30, and France’s CAC 40 gained 0.8% to 4,639.02. Italy’s FTSE MIB climbed 2.6% to 21,512.39, and Spain’s IBEX 35 tacked on 0.8% to 10,430.30. The U.K.’s FTSE 100 gained 0.9% to 6,490.70.

Crude oil prices settled lower on Wednesday, down for a fifth straight session, after a U.S. government report showed surprise weekly increases in crude and gasoline inventories. The August contract for WTI crude settled at USD 51.65 a barrel, down 68 cents, or 1.3% and the brand crude rose 20 cents, or 0.4%, to USD 57.05 a barrel. The Indian basket of crude oil prices has fallen to USD 56.01 a barrel, its lowest in three months, due to continued concerns over the Greek debt crisis and China’s accelerating stock market plunge.

Asian shares reversed course and rose on Thursday as a slide in battered Chinese stocks was stemmed, at least temporarily. Japan's Nikkei trimmed earlier losses and was last down 0.7% as Chinese stocks reversed their fall and traded at flat. Hong Kong's Hang Seng soared 2.9%. South Korea’s Kospi index fell 0.75%. New Zealand’s NZX 50 Index slid 0.85% and Australia’s S&P/ASX 200 Index fell 0.5%.

A SGX CNX Nifty Index future for July delivery was up 12 points at 8,377. Indian markets likely to consolidate. The first-quarter earnings season start with TCS on 9th July 2015 which will remain in focus today.