Market Likely To Open In Green
Indian equities market posted their best weekly gain in a month, primarily driven by a reversal in international scenario following a bailout agreement between Greece and Eurozone leaders, further cemented by Greek parliament's nod on austerity measures that led to fading of global despondency. BSE Sensex recovered last week’s 1.9% losses to advance 801.91 points or 2.9%. The Nifty surpassed the psychological 8,500 mark and closed with gains of nearly 3% or 249.3 points. The BSE small-cap and mid-cap indices continued to outperform blue-chips as investors took more stock-specific bets. The government's approval on composite FDI cap for more capital flowing into the system also helped the sentiments.
Wall Street's Nasdaq stock index ended at a record high on Friday and it finished the week up a whopping 4.3%, the largest weekly gain since Oct. 2014. The S&P 500 ticked up 0.1% to 2,126.64, finishing the week up 2.4%, while the Dow Jones Industrial dropped 0.2% to 18,086.45, to finish the week up 1.8%, and the Russell 2000 slipped 0.4% to 1,267.47 today, to finish the week up 1.2%.
The US market has rallied over the week as fears about Greece's debt crisis have receded, and as Federal Reserve Chairwoman Janet Yellen and other central bankers have worked to reassure investors. Strong U.S. consumer price index data, rebounding housing starts and surging building permits bolstered expectations that the Federal Reserve was moving closer to hiking interest rates, which buoyed the dollar. The Federal Open Market Committee's next two-day meeting starts July 28.
European stock prices gained 4.3% this week, largely fueled by expectations that Greece will be able to avert an exit from the eurozone. For the week London FTSE rose 1.5%; German DAX soared 3.2%; French CAC rose 4.5%; FT Milan had a weekly gain of 3.6% and Spanish IBEX finished up 4.0%.
On the week, WTI oil futures slumped USD 1.26, or 3.51%, the fifth consecutive weekly loss, as worries over high domestic U.S. oil production weighed. Brent futures lost USD 1.49, or 3.22%, the third straight weekly decline, amid concerns a resumption of Iranian oil exports will add to a global glut.
Asian equities were mixed on Monday. Markets in Japan and Indonesia closed for public holidays. South Korea’s Kospi index and Australia’s S&P/ASX 200 Index were little changed. New Zealand’s NZX 50 Index reversed their fall and advanced 0.14%. The Shanghai Composite was up 1.5%.
A SGX CNX Nifty Index future for July delivery was up 11 points at 8,643. Indian markets likely to open in green. CCL Products, Hindustan Zinc, Kajaria Ceramics, Kitex Garments, LIC Housing Finance, MPS, Rane Brake, Sasken Communication, Tata Coffee, Tinplate, Ultratech Cement and Welspun India would be reporting third quarter earnings today. The Street will keenly track the developments of the monsoon session of the Parliament that begins from Tomorrow, 21 July 2015.