Market Likely To Open Flat

Indian equities markets extended its winning streak to the eight day as the monsoon progressed better than forecast raised hopes that the Reserve Bank might cut rates further in near future. The Sensex gained 0.27% at 27,804.37 while the Nifty finished 0.34% higher at 8,381.55. Investors are eyeing for expiry of June derivative contracts (on Thursday) and Greek deal that is expected to be this week. The BSE Mid-Cap and Small-Cap index rose 0.08% and 0.45% respectively.

The government has proposed to spend around Rs 1 lakh crore on the two schemes over the next five years. While Rs 48,000 crore has been earmarked for 100 smart cities, Rs 50,000 crore are marked for the Amrut scheme for 500 cities. Once the entire smart-city plan is rolled out across the country, Uttar Pradesh will account for the most (13), followed by Tamil Nadu (12), Maharashtra (10), Madhya Pradesh (seven), and Gujarat and Karnataka (six each). Though the timeline hadn't been defined, the entire exercise of making 100 cities 'smart' could take a decade or more, said an expert.

The government intends to provide USD 9 billion (about Rs 57,000 crore) to public sector banks towards recapitalisation over the next two fiscal to meet Basel III norms and for growth, Finance Secretary Rajiv Mehrishi said.

U.S. stocks ended Tuesday’s choppy session slightly higher amid positive US and eurozone data as investors kept a wait-and-see attitude on Greece's potential debt deal. The broad-market S&P 500 held close to the flatline, gaining 1.35 points, or 0.06% to 2,124.20, while the Nasdaq Composite rose 6.12 points (0.12 per cent) to 5,160.09, hitting a record close for the second day in a row. The Russell 2000 gained 3.37 points, or 0.3%, to 1,295.76, its all-time high. The Dow Jones Industrial Average added 24.76 points, or 0.1%, to end at 18,144.54.

US data was mixed, with durable goods orders falling third time in four months, falling 1.8% in May from a month earlier but sales of new homes surging 2.2% in May from a month earlier to 546,000, a seven-year high, suggesting construction will soar.

Major European equities markets made stronger gains on hopes of a deal on Greece's bailout and a surge in eurozone business activity that drove PMI to its best level in four years. Greek stocks rose 6.1%, while France’s CAC 40 gained 1.2% and Germany’s DAX added 0.7%. The Stoxx Europe 600 rose 1.2 % to 398.83. The U.K.’s FTSE 100 edged up 0.1 % to 6,834.87.

Asian shares advanced early Wednesday, with Japanese markets hitting an 18-year peak, as optimism around Greece's debt talks continues to buoy sentiment. Japan's Nikkei 225 index added 0.54% while South Korea’s Kospi index traded at flat. Australia’s S&P/ASX 200 Index gained 0.28%, as did New Zealand’s NZX 50 Index. China's Shanghai Composite advanced 1.85%.

The SGX Nifty was up 4 points at 8,385. Indian markets are likely to open flat. Going forward it may remain volatile due to ahead of F&O expiry.