Sensex slips 167 points, Nifty ends below 8350; FMCG supports

03:30 pm Market closing: After a bad day of slaughter on Greek worries, the market finally managed to pick up some strength towards end. The Sensex was down 166.69 points or 0.6 percent at 27645.15, and the Nifty slipped 54.40 points or 0.6 percent at 8326.70.  About 896 shares advanced, 1791 shares declined, and 154 shares were unchanged.

HUL, L&T, Dr Reddy's Labs, ICICI Bank and HDFC were top gainers in the Sensex. Among the losers were Hindalco, Sun Pharma, Maruti, SBI and Tata Motors.

03:15 pm Midcap IT growth? Madhu Babu of Centrum Broking expects a 12-13 percent growth in mid-cap IT segment. "Over the last 5 years, the service mix in the segment has improved substantially, they have made good relationship with their top ten clients and had a good influx of senior management," he said.

He sees TCS growing 4 percent in dollar terms and a bounce back from Infoysys, which reported a 2.75 percent revenue decline in the last quarter. For HCL Tech, he has a target of Rs 1060 per share and for Wipro, a target of Rs 660 per share.

03:00 pm Market Update: Equity benchmarks remained under pressure. The Sensex fell 191.66 points or 0.69 percent to 27620.18 and the Nifty slipped 63.70 points or 0.76 percent to 8317.40. About 740 shares have advanced, 1855 shares declined, and 145 shares are unchanged on the BSE.

02:55 pm GMR Infra in news: GMR Megawide Cebu Airport Corp (GMCAC), a joint venture between GMR Infrastructure and Megawide Construction Corp. of Philippines, today broke ground for the construction of Mactan-Cebu International Airport (MCIA) terminal 2, which is expected to be completed by 2018.

GMR Infra JV won the contract to expand and modernise Mactan-Cebu airport on BOT basis for 25 years. GMR Infra is the designated operator for the airport and the company officially took over the responsibility of operations of the airport on November 1, 2014.

02:45 pm Crompton in focus: Avantha Group Company Crompton Greaves has bagged two important orders. One is for 8 bays of 138 kV, 60 Hz, AIS Switchyard in the Philippines for MINERGY Coal Corporation and the other for 30 MVA, 132kV mobile substations for Wellington Turbines, a Venezuelan enterprise.

02:30 pm Motherson Sumi: Motherson Sumi stock is currently in focus because 80 percent of its revenues are derived from subsidiaries based in Europe and now with the fear of Greece exiting Eurozone there is a possibility of impact on the business revenues of the company.

However, Vivek Chaand Sehgal, Chairman of Motherson Sumi Group does not think so and says at best there could be some translational loss in the balance sheet of the Indian business.  ''We have never had any connection with Greece," he said in an interview to CNBC-TV18.

In fact, according to him a weaker euro would be better for their sale of cars, said Sehgal.

The total debt exposure for the company currently stands at 600 million euros.

02:15 pm Fin Secretary on Greec issue: India is monitoring developments after the breakdown in talks between Greece and its creditors but does not have a firm plan in place to deal with any significant fallout, Finance Secretary Rajiv Mehrishi said.

Worries over Greece sparked a sell-off in emerging markets on Monday. In India, the Nifty fell as much as 2.2 percent, while the benchmark 10-year bond yield hit its highest since May 22.

"This a dynamic and evolving situation. There is no firm plan that we can access," Mehrishi told reporters. "Nobody can predict what the exact situation would be."

Mehrishi added the government was in touch with the Reserve Bank of India (RBI) to deal with any situation.

RBI Governor Raghuram Rajan said last week he expected India's economy would be able to withstand any impact from the crisis in Greece thanks in part to its foreign exchange reserves, which reached a record high of USD 355.46 billion as of June 19.

Mehrishi said the fallout from Greece would not have a direct impact on India but that flows would be a potential concern.

"If yields on euro bonds go up, then it might impact inflows and outflows from India," he said.

02:00 pm Market Check
The market recovered from day's low in afternoon trade with the Nifty climbing above 8300. Private banks, auto, capital goods and oil stocks cut losses. IT stocks continued to see selling pressure after Tech Mahindra warned about Q1 revenue and margin. However, FMCG stocks rebounded.

The Sensex declined 205.28 points or 0.74 percent to 27606.56 and the Nifty slipped 73.50 points or 0.88 percent to 8307.60. About 665 shares have advanced, 1870 shares declined, and 148 shares are unchanged on the BSE.

Rakesh Arora, Macquarie said the impasse in Greece is a good opportunity to buy into the market as it consolidates before the next leg up.

According to him, government spending on infrastructure is finally starting to make some impact and whispers are back about a possible interest rate cut in August.

1:50 pm Interview: JSW is looking to invest in ports on the western and eastern coasts, the company's CMD Sajjan Jindal said.

The company will either acquire or build ports to ease cargo traffic on the eastern coast, Jindal said. JSW already has a port on the western coast.

Jindal said the management has initiated the acquisition process, adding that support from Indian railway will be important.

The company has signed a JV with the government to build a 34 kilometer-rail link to connect JSW's Jaigarh Port with Konkan Railways.

1:30 pm FII view: With the Greek default risk still on, it would be better if investors stayed out till further clarity emerges is the word coming in from Andrew Holland, CEO, Ambit Investment Advisors (AIA). Would be in a wait and watch mode for now, he adds.

He says even if Grexit does happen, it would not be an overnight process and would take months. However, if that does come about then Portugal, Italy and Ireland would be next vulnerable countries in Europe, which would send bond yields going higher over there, and in turn would have contagion effect on emerging markets (EMs), including India. It could lead to sort of re-run of 2013 summer, in terms of currency crisis around EMs.

Nervous traders continue to sell aggressively as Greece payment deadline nears. The Sensex is down 410.56 points or 1.5 percent at 27401.28, and the Nifty is down 130.20 points or 1.5 percent at 8250.90. About 542 shares have advanced, 1879 shares declined, and 141 shares are unchanged. 

Hindalco, SBI, Tata Motors, Sun Pharma and ICICI Bank are major laggards in the Sensex. Among the gainers are HUL and NTPC.

India is in a better placed to weather any storm in global financial markets, compared to other emerging markets, Pranjul Bhandari, Chief India Economist at HSBC said. Bhandari expects the rupee to be volatile, and to gradually depreciate over the next two years.

She sees the rupee at 66/USD by March and at 67/USD the following year The focus has shifted from trade imbalance to indebtedness over the last year, she said, adding that short term debt will be impacted in the event of a big crisis.

12:58 pm Market recovers: Equity benchmarks recovered from day's low. The Sensex fell 424.43 points or 1.53 percent at 27387.41 and the Nifty declined 134.90 points or 1.61 percent to 8246.20. About 532 shares have advanced, 1883 shares declined, and 142 shares are unchanged on the BSE.

HUL and NTPC turned positive, up marginally

12:50 pm June auto sales forecast: Nomura expects the recent trend of strong growth momentum in medium & heavy commercial vehicles (MHCVs) and steady recovery in the passenger vehicle industry to sustain in June as well.

It expects 24 percent Y-o-Y volume growth in MHCVs; for PVs, while industry volume growth on a Y-o-Y basis will likely be flattish due to the higher base effect, underlying growth momentum remains strong, it said in its note.

Note that passenger vehicle industry volumes had increased by 14 percent Y-o-Y in June-14 due to fears of a roll-back of excise duty benefits (4-6 percent) in the July-15 government budget.

On the other hand, rural volumes continue to remain under pressure, which will have some impact on 2-wheeler and tractor industry volumes, said the brokerage.

Monsoon rains so far have been 28 percent above normal. "If rainfall is good this year we can expect recovery in rural demand around the festive period (October- November). We expect 2-wheeler industry volumes to grow at around 5 percent; Honda should continue to outperform industry growth due to stronger growth in scooters," it said.

12:40 pm IndusInd sets QIP price: IndusInd Bank has fixed the floor price for its QIP at Rs 821.54 apiece.

The qualified institutional placement (QIP), which was approved by shareholders on June 08, opened on June 25 for subscription.

12:30 pm Europe opens lower: European markets reacted to Greece issue. France's CAC, Germany's DAX and Britain's FTSE 4.5 percent, 0.9 percent and 2.5 percent, respectively as the Greek crisis enters a new phase following the imposition of capital controls to prevent a run on the country's banks.

Greece's place in the euro zone now hangs in the balance following a tumultuous weekend in which last-ditch talks between Greece and its lenders broke down, prompting the European Central Bank to cap emergency funding to the country's banks at current levels.

Despite prior assurances from his government that there would be no limit on withdrawals, Greek Prime Minister Alexis Tsipras said Sunday that the country's central bank had been forced, after the ECB's move, to recommend a bank holiday and capital controls – a 60 euro limit on withdrawals from cash machines. The stock market will also be shut all week.

Left without a deal, Greece is now expected to default on a 1.6 billion euro debt due to the International Monetary Fund (IMF) on Tuesday.

After talks broke down, Tsipras called a referendum on the country's bailout program for July 5.

12:20 pm Stocks in news: Tech Mahindra issued a warning for the first quarter earnings, saying revenue and margins will show a sequential decline. The stock fell nearly 7 percent intraday, hitting a 52-week low.

Sun TV Network lost 4 percent as CNBC-TV18 learnt from government sources that the law ministry upheld the attorney general's opinion which said security clearance can be denied only if promoters are booked under the unlawful activities prevention act. Sun TV management told CNBC-TV18 that most lawyers are on the same page as the attorney general and the I&B ministry.

12:10 pm Market Expert: With the Greek default risk still on, it would be better if investors stayed out till further clarity emerges is the word coming in from Andrew Holland, CEO, Ambit Investment Advisors (AIA). Would be in a wait and watch mode for now, he adds.

He personally was shocked by the announcement of referendum by Greece.

He says even if Greixt does happen, it would not be an overnight process and would take months. However, if that does come about then Portugal, Italy and Ireland would be next vulnerable countries in Europe, which would send bond yields going higher over there, and in turn would have contagion effect on emerging markets (EMs), including India. It could lead to sort of re-run of 2013 summer, in terms of currency crisis around EMs.

However, since India is in a much better position than it was two-year ago, so even in a worst case scenario rupee could go to levels of 65 to the dollar and not further than that, says Holland because India is not that exposed to Europe and particularly Greece.

12:00 pm Market Check:
Bears took charge on Dalal Street as Grexit fears wobbled the market. Equity benchmarks fell 2 percent with the Nifty hovering aorund the 8,200 mark. Bank Nifty led the fall. Broader markets, too, saw sharp losses, falling 2.5 percent each.

The Sensex plunged 528.20 points to 27283.64 and the Nifty dropped 167 points to 8214.10. About four shares declined for every share advancing on the Bombay Stock Exchange.

The currency market, too, took cues from the Greek crisis as the rupee weakened against the dollar, down 21 paise to 63.85/$, in-line with Asian currencies while the 10-year government bond fell to the lowest level since June 16.

Asian markets also crumbled. Shanghai fell 3 percent even as the Chinese central bank unveiled it's fourth easing package since November. Hang Seng and Nikkei dropped nearly 3 percent. Euro touched a one month low in Asian trade while the dollar-yen dropped one percent.

11:40 am L&T bags order: Engineering and construction major Larsen & Toubro (L&T) today said it has received orders worth Rs 2,035 crore across various business verticals.

Its building and factor business segment has secured new orders for construction of office spaces, including add-ons.

Besides, the transportation infrastructure business has won a major EPC order for construction of 109.54 km of a four-lane dual carriage way of the Solapur-Maharashtra-Bijapur-Karnataka road.

Under the project, the company has to construct 46.23 km of service road, six flyovers, two railway over bridges, three major bridges, 49 minor bridges and 27 underpasses, L&T said.

L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 15 billion revenue.

11:30 am Tech Mahindra Q1 revenue warning: After Persistent Systems and KPIT Technologies, Tech Mahindra is the third company to warn about its weak earnings in the first quarter of FY16. "Q1FY16 has some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA margin a sequential basis," it explains.

Seasonally weak mobility business will be a drag on Q1 revenues and EBITDA, it says, adding H1 B visa costs will be another drag on margins. However, favourable currency movements could help both revenue and margins, says Tech Mahindra.

11:20 am CLSA on ICICI Bank: Brokerage CLSA maintains its buy rating on ICICI Bank, the country's largest private sector lender, with a target price of Rs 440 apiece. It sees a favourable risk-reward profile.

"Sensitivity analysis indicates that for non-performing loans (NPLs) 10 percent higher than we expect, the impact would be 2 percent on earnings and even less on book value. Even in a higher-stress situation, i.e. slippages rise by 40-50 percent over FY16-17CL, ICICI would deliver 16 percent return on equity (ROE), suggesting a fair PB of 1.4x and implying around 10 percent downside," the brokerage explains in its note.

11:10 am Greece shuts banks: Greece moved to check the growing strains on its crippled financial system on Sunday, closing its banks and imposing capital controls that brought the prospect of being forced out of the euro into plain sight.

After bailout talks between the leftwing government and foreign lenders broke down at the weekend, the European Central Bank froze vital funding support to Greece's banks, leaving Athens with little choice but to shut down the system to keep the banks from collapsing.

Banks will be closed and the stock market shut all week, and there will be a daily 60 euro limit on cash withdrawals from cash machines, which will reopen on Tuesday. Capital controls are likely to last for many months at least.

"The more calmly we deal with difficulties, the sooner we can overcome them and the milder their consequences will be," a sombre-looking Prime Minister Alexis Tsipras said in a televised address. He promised bank deposits would be safe and salaries paid.

11:00 am Market Check
The Indian market is bleeding on possibility of Greek debt default. The Sensex is down 597.13 points or 2.15 percent at 27214.71, and the Nifty down 183.60 points or 2.19 percent at 8197.50. About 391 shares have advanced, 1679 shares declined, and 116 shares are unchanged.

Banks are bleeding with major laggards like SBI, ICICI Bank and HDFC Bank.

Taking positive cues from global markets, gold futures traded Rs 270 higher at Rs 26,794 per 10 grams as speculators built up fresh bets. Analysts attributed the rise in gold prices to a firming trend overseas as Greece shut banks and imposed capital controls, boosting demand for the precious metal as a safe haven amid concerns of the country's likely exit from the euro zone. Meanwhile, gold rallied 1.1 per cent to USD 1,188.23 an ounce in Singapore.

Crude oil futures slipped Rs 52 to Rs 3,763 per barrel today, in line with a weak trend in Asian trade, as traders cut down their exposure. Analysts said the fall in crude oil futures is mostly in step with a sluggish trend in Asian trade, tracking the sell-off in global equity markets on fears of a Greek debt default.

10:55 am Nifty breaks 8200: The market extended losses with the Sensex falling 591.52 points or 2.13 percent to 27220.32 and the Nifty losing181.85 points or 2.17 percent to 8199.25.

About 395 shares have advanced, 1659 shares declined, and 117 shares are unchanged on the BSE.

10:40 am Market Expert: Independent market expert Ratnesh Kumar says worries in market - India as well as global - are likely to stay on resulting in higher volatility and lesser risk apetite until Europe votes on July 5 to get a referendum on Greece. India at the moment is not facing the heat of Greek crisis, but one can expect such significant global event to impact its equity market.

He says the domestic story is seeing some direction with green shoots emerging in capex, and the correction may provide an opportunity to look at quality financials and capital goods sectors. The stability of rupee, even on the face of taper talks, is a confidence booster making IT stocks attractive. He expects IT to give better returns in FY16 compared to FY15.

10:30 am Greece issue: Greece, which may default on an International Monetary Fund debt repayment due on Tuesday after talks with creditors broke down, owes its official lenders 242.8 billion euros (USD 271 billion), according to a Reuters calculation based on official data, with Germany by far the largest creditor.

That figure includes loans made under two bailouts from European governments and the IMF since 2010 - worth a nominal 220 billion euros so far, of which some has been repaid - as well as Greek government bonds held by the European Central Bank and national central banks in the euro zone.

Private investors hold 38.7 billion euros of Greek government bonds following a major write-down and debt swap in 2012 that reduced the Greek debt stock by 107 billion euros and the value of private holdings by an estimated 75 percent.

The Greek government has also issued 15 billion euros in short-term Treasury bills, mostly to Greek banks.

10:20 am PSU banks' NPAs: United Bank of India has topped the list of public sector lenders with maximum bad loans including restructured assets as a percentage of total advances.

According to the data provided by the RBI to the Finance Ministry, United Bank of India's 21.5 percent assets are either bad or have been restructured to save them from turning non-performing assets (NPAs).

The other banks that have significant amount of gross NPAs and restructured loans include, Central Bank of India (21.30 percent), Indian Overseas Bank (19.40 percent), Punjab & Sind Bank (18.74 percent) and Punjab National Bank with 17.94 percent as on March 2015.

State Bank of Patiala, Allahabad Bank, Oriental Bank of Commerce, UCO Bank and Dena Bank all have bad and restructured loans in excess of 15 percent.

The top-30 defaulters are sitting on bad loans of Rs 93,769 crore, which is more than one-third of the gross non-performing assets of PSU banks at Rs 2,55,180 crore as on March 2015. There are four kinds of restructuring.

10:10 am FII View: Asian market will suffer a great deal under the contageon effect of the Greece crisis, but India may not be directly impact, says RaboBank's Michael Every in an interview to CNBC-TV18. Calling India's response on Monday to Greece's crunch time as "kneejerk reaction", he says Indian equity market is not in the firing line.

10:00 am Market Check
The market fell nearly 2 percent, dragged by panic selling on fears of Greece default. All sectoral indices are trading in the red; banks, auto & Reliance Industries are the biggest contributors to the Sensex's fall. However, BPCL bucked the trend, up 0.8 percent.

The Sensex slipped 505.66 points or 1.82 percent to 27306.18 and the Nifty lost 156.85 points or 1.87 percent to 8224.25. About 278 shares have advanced, 1449 shares declined, and 92 shares are unchanged on the BSE.

Rakesh Arora, Macquarie said India's market has taken solace in a strong start to the monsoon. The impasse in Greece is a good opportunity to buy into the market as it consolidates before the next leg up, he added.

According to him, government spending on infrastructure is finally starting to make some impact and whispers are back about a possible interest rate cut in August.

9:55 am Exclusive: Stating that he had been in a "state of daze" since the Ministry of Home Affairs denied granting security clearance to 33 channels of the Sun Group, citing "economic security", the group's CFO SL Narayanan said he was hopeful the Information & Broadcasting Ministry will have an alternate view on the subject.

"Reports have said the I&B Ministry does not see any reason to deny us clearance," Narayanan said, close on the heels of a CNBC-TV18 report saying both the Law Ministry as well as the I&B Ministry did not see any merit in MHA's case.

In an interview with CNBC-TV18, Narayanan said there are "solid institutions in this country that will give us relief and protect us notwithstanding what some bureaucrats in one department may think." 

9:45 am Rupee outlook: Ashutosh Khajuria, Federal Bank in an interview to CNBC-TV18 spoke about the Greece impact on Indian currency and bond markets. According to him part of the ongoing Greece issues are already factored in by currency markets and may not impact rupee and yields in a big way.

He sees rupee in 63.80-63.90 to the dollar range.

"Now, if it depreciates a bit, maybe a percentage or so, maybe 50-60 paise from now over the next one week or so, I do not see there would be much of an intervention happening from RBI because that would mean something they would like to see looking into the trend, looking into the consecutive six months of exports falling etc," he says in an interview.

9:30 am FII view: Rakesh Arora, Macquarie said India's market has taken solace in a strong start to the monsoon. The impasse in Greece is a good opportunity to buy into the market as it consolidates before the next leg up, he added.

According to him, government spending on infrastructure is finally starting to make some impact and whispers are back about a possible interest rate cut in August.

Amid Greek uncertainty, the market has opened with some sever losses. The Sensex is at 27293.25, down 518.59 points or 1.86 percent. The Nifty is down 153.25 points or 1.83% at 8227.85. About 136 shares have advanced, 862 shares declined, and 69 shares are unchanged.

Tata Motors, ICICI Bank, SBI, Axis Bank and Hindalco are major laggards in the Sensex with no stock in green at the moment.

The Indian rupee declined in the early trade. It has opened lower by 20 paise at 63.84 per dollar versus Friday's closing of 63.64. 

According to Agam Gupta of Standard Chartered, the range for USD-INR should be Rs 63.60-64/dollar as we expect strong USD demand to emerge on any dips. Upticks towards 64 should see USD selling interest from exporters.

Euro plunged to a 1-month low after Greece failed to strike a deal with its international lenders. Euro traded below 1.10 to the dollar. A failure by Greece to repay a 1.6 billion-euro debt owed to the IMF by Tuesday could lead to its exit from the euro zone, which many investors fear may weaken the entire currency block.

Greek banks and stock markets are shut today while European central bank has decided to keep the emergency funding to the country's banks at current levels. The Greek PM has surprised euro zone leaders by calling for a referendum to be held on July 5 to ask voters to decide on whether to accept the bailout terms which his government opposes.

All eyes will be on German bond as European markets open later today.

Asian markets fell in opening trade. Japan's Nikkei fell 2.1 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.8 per cent, drawing little help from more policy easing from China's central bank at the weekend.

Chinese stocks have plunged over 20 per cent in the last two weeks, hit by tight liquidity conditions ahead of the quarter-end and uncertainty over the central bank's monetary policy.

In commodities, Brent crude slipped over 1 percent to sub USD 63 per barrel. Nymex is around the 58 dollar mark.