Market Likely To Open Flat

Indian equities market capped the first weekly drop in four weeks on Friday on account of ongoing global uncertainty, i.e. China meltdown and Grexit that ate into risk appetite of market participants. First quarter earnings season also kept market participants at the bay. The BSE Sensex gained 0.21% for the day, but it fell 1.3% for the week. The Nifty rose 0.22% but fell 1.5% for the week. Broader market depicted strength. The BSE Mid-Cap index rose 0.45 points to settle at 10,870.45 and the BSE Small-Cap index rose 32.36 points or 0.29% to settle at 11,335.94. Both these indices outperformed the Sensex.

India’s industrial output grew a disappointing 2.7% YoY in May, compared with 4.1% in April, primarily due to weak growth in the manufacturing sector. For May last year, the Index of Industrial Production (IIP) grew 5.6%. The cumulative growth for the period April-May 2015-16 over the corresponding period of the previous year stands at 3%.

U.S. stocks rallied on Friday, recovering from a sharp selloff earlier in the week, as hopes for resolution in Greece and stabilization in China boosted sentiment. The S&P 500 posted its biggest one-day gain in two months, but ended the week virtually flat. The benchmark index advanced 25.31 points, or 1.2%, to 2,076.62. The Dow Jones Industrial Average gain 211.79 points, or 1.2%, to 17,760.41 and eked out a 0.2% weekly gain. The Nasdaq Composite rallied 75.30 points, or 1.5% to 4,997.70, but finished the week 0.2% lower.

Crude oil futures posted their biggest weekly decline since March amid concerns about a continued oversupply of crude oil and potential weaker demand from the eurozone and China. WTI crude for August delivery settled down 4 cents, or 0.1%, at USD 52.74 a barrel on the New York Mercantile Exchange. The contract lost 7.4% this week, the biggest one-week drop since March. Brent crude rose 12 cents, or 0.2%, to USD 58.73 a barrel on ICE Futures Europe. Prices lost 2.6% for the week.

The major European markets saw considerable strength on Friday amid optimism about a Greek deal. While the U.K.'s FTSE 100 Index jumped by 1.4%, the German DAX Index and the French CAC 40 Index soared by 2.9% and 3.1%, respectively. DAX making a weekly gain of 2.3% while French CAC ended up with a weekly gain of 2.0%. The pan-European Stoxx 600 ended the day more than 2% higher, and on the week closed 1.5% higher.

Asian equity markets were mostly higher on Monday, but the mood was cautious amid uncertainty over Greece as an emergency summit of euro zone leaders continues. Japan’s NIKKEI 225 index added 1.2% as the yen pared earlier gains. Australia’s S&P/ASX 200 Index reversed early loss and climbed 0.369% while New Zealand’s NZX 50 Index declined 0.37%. South Korea’s Kospi index climbed 0.78%. Mainland shares extended gains, rising 0.64%, after closing up 4% on Friday as Beijing continues to tighten controls over the stock market.

SGX CNX Nifty traded at flat. Indian markets likely to open flat. Investors would be eyeing Balance of Trade data and June CPI, both of which are scheduled to be released on Today (July 13, 2015). Indusind Bank, Petron Engineering Construction and Reliance Industrial Infra would be reporting third quarter earnings today.