Indian Market Likely To Open In Green

Indian equities markets gained strength in late trade Tuesday supported by led by defensive shares while positive cues from Asian peers also boosted sentiment. However, sentiment remained off-colour because of lingering concerns of Greece’s debt crisis. The Sensex closed up 135.68 points or 0.5% at 27780.83, and the Nifty was up 50.10 points or 0.6% at 8368.50. The broader markets outperformed benchmarks throughout the session today; BSE midcap and smallcap indices rising over 1% each.

The output of eight infrastructure sectors expanded by 4.4% in May, the fastest in six months, on the back of upsurge in production of coal (7.8%), refinery products (7.9%) and electricity generation (5.5%). The eight core industries account for about 38% of the country’s industrial production. Last fiscal, the eight core industries posted a growth of 3.5%, while the year before growth was higher at 4.2%.

U.S. stocks reversed course Tuesday, and a global equities gauge was flat, while the euro fell as Greece grappled with a looming deadline on a debt payment to the IMF. The Dow Jones Industrial Average gained 23.16 points, or 0.1%, to 17619.51, while the S&P 500 index added 5.47 points, or 0.3%, to 2063.11. The Nasdaq Composite Index rose 28.40 points, or 0.6%, to 4986.87.

In commodities, oil futures bounced back with both Brent and U.S. crude closing the quarter with strong gains. Brent crude oil price was up 2.2% at USD 63.40 a barrel and closed down more than 3% for June, but added nearly 15% in the quarter. WTI crude price gained 1.1% at USD 59.09 and ended up nearly 24% for the quarter.

Europe's main stock markets ended the day firmly lower Tuesday as hopes faded of a last-minute deal to stave off Greece defaulting on its payment to the International Monetary Fund. The Euro Stoxx 50 index, which tracks large-cap stocks in the eurozone, fell 1.29 % to 3424. Meanwhile, the German Dax dropped 1.25% to 10944; the French CAC 40 slumped 1.63% to 4790; and the UK’s FTSE 100 index saw a 1.5% decline to 6520. Rome shed 0.48% and Madrid fell 0.78%.

Markets held on to some chance of resolution even as German Chancellor Angela Merkel played down any hopes of a last-minute deal with Greece and said there will be no new negotiations before a vote planned for Sunday. Greeks face a referendum that EU partners say will amount to a choice between staying in the euro or leaving.

Asian shares drifted modestly higher early Wednesday after Greece missed the deadline for a payment to the International Monetary Fund hours as its bailout program expired. Japan’s Topix index added 0.3% following the release of a better-than-expected central bank survey. Australia's S&P ASX 200 index edged up 0.71%, with the help of a higher open in banking and energy plays. The Kospi index gained 0.87% in Seoul, while New Zealand’s NZX 50 Index rose 0.80%.

China's Shanghai Composite index traded at flat, after trading briefly in the black following the release of the final HSBC PMI. The HSBC PMI data, which focuses more on small and medium sized firms, came in at 49.4 in June - below a preliminary reading of 49.6 but above the 49.2 recorded in May.

Since SGX Nifty fell 33 points. Indian markets likely to open in green despite Greece default. Next week onwards the first-quarter earnings season start with IT companies.