Market Likely To Open In Green
After plunging in early trade on yesterday, Indian equities market comeback in late-afternoon trade despite rising Grexit fears and the Sensex rallying 434 points from the day’s low level to end with a gain of 115.97 points at 28,208.76. The Nifty advanced 37 points to shut shop above its crucial psychological level of 8,500 on the back of broad-based buying. The BSE Mid-Cap index rose 92.77 points or 0.85% to settle at 10,962.77. The BSE Small-Cap index rose 123.41 points or 1.09% to settle at 11,426.99. Both theses indices outperformed the Sensex.
According to RBI, foreign direct investment is prohibited in manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. It is clarified that the prohibition applies only to manufacturing of these tobacco products and that foreign direct investment (FDI) in other activities relating to these products, including wholesale cash and carry, retail trading etc. shall be governed by the sectoral restrictions laid down in the FDI policy framed by the Department Of Industrial Policy & Promotion, Ministry of Commerce and Industry, Government of India and in the Schedule 1 of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 as amended from time to time.
U.S. stocks fell Monday, weighed down by a tumble in oil prices as well as Greek voters’ rejection of creditors’ conditions for further financial aid. The main indexes fell sharply at the open, but trimmed losses during the day to end modestly lower. The S&P 500 closed down 7.98 points, or 0.4% to 2,068.79. The Dow Jones Industrial Average slide 46.13 points, or 0.3%, to 17,683.98 and the Nasdaq Composite ended the day down 17.27 points, or 0.3%, at 4,991.97.
Oil prices on Monday skidded to their biggest single-day declines in more than three months, as gyrations in Chinese stocks and the prospect of more crude from the US. Adding to the pressure on oil, Iran and global powers were trying to meet a July 7 deadline on a nuclear deal, which could bring more supply to the market if sanctions on Tehran are eased. U.S. crude settled at USD 52.53 a barrel, down USD 4.40 or 7.7%, from its settlement on Thursday and Brent settled down USD 3.78, or 6.3%, at USD 56.54, also both below the 100-day average.
European stocks markets also fell after Greece rejected austerity demands in a referendum, fuelling fears it would crash out of the eurozone. The Stoxx Europe 600 index fell 1.2% to 378.68 and Germany’s DAX 30 index tumbled 1.52% to 10,890. While the CAC-40 in France fell 2%. The FTSE 100 index of leading British shares was 0.8% lower.
Asian shares outside China clawed back losses early Tuesday after sharp falls the previous day but investors remained on edge amid uncertainty over Greece's position in the euro. China’s Shanghai Composite Index dropped almost 2% in early trading, reversing much of gains made on Monday following unprecedented steps to stabilise a plummeting market. Japan’s Topix index climbed 1.3%. South Korea’s Kospi index reversed early gains and chop down 0.5%. Australia’s S&P/ASX 200 Index increased 1.62% and New Zealand’s NZX 50 Index gained 0.52%.
SGX CNX Nifty traded at flat. Indian markets likely to open in positive due to sharply fall in crude oil prices over 7% overnight. The key inflation and IIP data due on Friday, 10 July 2015 would be closely watched for consistency, and signals towards potential rate cut. The first-quarter earnings season start with TCS on 9th July 2015.