Markets to make a gap-down start on feeble regional cues

The Indian markets lost their momentum in final hours of the last session and ended marginally in red. Today, the markets are likely to get a gap-down start tailing the feeble regional cues amid continuing Greece debt crisis. Euro zone members have given Greece until the end of the week to come up with a proposal for loans. The metal pack is likely to suffer most on global rout, despite the rating agency Moody's report that Indian base metals industry is expected to grow by 8-10 percent annually over the next three years on the back of increased demand from power, construction and automotive sectors. However, there will be some support to the market with the Department of Industrial Policy & Promotion seeking help from the World Bank for its ambitious task of climbing into the top 30 of the World Bank's ease of doing business rankings in three years.FII’s too will be hoping a better deal with the report that Justice AP Shah committee looking into the issue of levying minimum alternate tax (MAT) on foreign portfolio investors (FPI) is expected to submit its report by the end of this month.

The US markets recovering from their initial fall ended higher in last session, while concerns about the ongoing Greek debt crisis contributed to the early weakness, the turnaround in latter trade was supported by a rebound by the price of crude oil. The Asian markets are trading in deep sea of red with Chinese market suffering steep decline of over 8 percent, after the commodity markets crashed. Trading in equity was halted and the People’s Bank of China said it will provide liquidity to the China Securities Finance Corp. and will prevent “systemic” risks.

Back home, Tuesday turned out to be a disappointing session for the Indian equity indices which ended the trade with marginal losses. Earlier, markets made a positive opening and traded in the green for most part of the day’s trade as sentiments remained up-beat after government dismissed the possibility of any material impact on the Indian economy from the developments in Greece, but it anticipates some impact on the rupee from investors pulling out in fear. Ongoing economic developments, progress of monsoons and a possibility of a rate cut too aided the sentiments. A further decline in crude oil prices and a strong rupee have also buoyed the trading sentiments.  However, sentiments took U-turn and entered in red in last hour of trade as investors turned cautious ahead of the first quarter earnings season, which will kick off with Tata Consultancy Services (TCS) announcing it April-June results on July 9. Also, Index of Industrial Production (IIP) data for the month of May is scheduled to be released on July 10. Some cautiousness came with CRISIL Research’s report stating that India Inc is set to post disappointing quarter results for quarter ended June 30, on the back of soft commodity prices, weak growth in investment linked sectors and subdued rural earnings. Meanwhile, all eyes would be in Brussels where Greek Prime Minister Alexis Tsipras would present a set of new proposals to an emergency euro zone summit in a last bid to stay in the euro zone. Weak opening in European counters too dampened the sentiments, the Asian markets too ended mostly in red. Back home, The banking shares remained on buyers’ radar on hopes of a rate cut by the RBI on the back of above-normal monsoons and a pickup in the economy. Shares of airlines companies too edged higher for a second straight day on hopes that the public sector undertaking (PSU) oil marketing companies (OMCs) may cut aviation turbine fuel prices if the current fall in crude oil prices continues. Additionally, Tyre stocks remained in limelight as lower rubber prices will boost profitability of tyre makers. Finally, the BSE Sensex declined by 37.07 points or 0.13% to 28171.69, while the CNX Nifty lost 11.35 points or 0.13% to 8510.80.