Mumbai, June 30 (IANS) Investor sentments were subdued in the Indian equity markets, which were trading flat as Greece headed towards a debt payment default on Tuesday.
The barometer of the Indian equity markets – the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) – was marginally up during the late-afternoon trade session.
Investors were anxious as a crucial deadline for the Mediterranean nation to repay part of its debt to the International Monetary Fund (IMF) ends on Tuesday.
Analysts say that with no hope of a settlement in sight, loan default by Greece has very much been factored-in by the markets, which did not panic and plunge on Tuesday like they did during Monday’s intra-day trade.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading flat. It was up 23.35 points or 0.28 percent at 8,341.75 points.
The 30-scrip S&P BSE Sensex, which opened at 27,627.39 points, was trading at 27,651.89 points (at 2.35 p.m.), down 7.00 points or 0.02 percent from its previous day’s close at 27,645.15 points.
The Sensex touched a high of 27,762.95 points and a low of 27,570.95 points so far in the trade.
According to Angel Broking, Indian markets opened in the red tracking the SGX Nifty and global cues.
“There is a hope in the markets that the Greece referendum will pave the way for resolution of the crisis. That’s why the markets have not plunged and are staying put, though marginally higher,” Dipen Shah, head of the private client group research, Kotak Securities, elaborated to IANS.
“The investors are unwilling to chase higher prices. There is also a bargain hunting going on. The investors are waiting for prices to become more attractive. But we have also seen an increased risk-taking appetite of investors since Monday,” said Anand James, co-technical head for research with Geojit BNP Paribas.
James pointed out that domestic positive cues like healthy macro conditions, growth rate and a stable economy will come back in focus each time the price falls due to the Greek crisis.
“Domestic factors like monsoon’s performance during July, fiscal deficit data to be released today (Tuesday), re-rating cycle by the global agencies and the upcoming first quarter results season will come back into focus,” James added.
Devendra Nevgi, chief executive of ZyFin Advisors, told IANS that the Indian markets have shown resilience towards the crisis.
“The markets are now stable. Today’s trade will also depend on the European markets’ performance. However, till now, Indian bond yields have gone up, the rupee is stable and the markets look decently placed,” Nevgi added.
During Tuesday’s intra-day trade so far, heavy selling pressure was seen in information technology (IT), bank capital goods, technology, entertainment and media (TECK) and automobile sectors.
However, healthy buying took place in healthcare, consumer durables, fast moving consumer goods (FMCG), metal and oil and gas sectors.
The S&P BSE IT index fell by 84.15 points, followed by the bank index plummet by 55 points, capital goods index receded by 42.28 points, TECK index was down by 12.92 points and automobile index slipped by 8.58 points.
The S&P BSE healthcare index augmented by 278.82 points, consumer durables index gained by 211.04 points, FMCG index edged-higher by 136.56 points, metal index rose by 117.52 points and oil and gas index was up by 21.90 points.