Markets Next Week: Much Would Depend On The Greece Referendum

Business

oi-Sunil

By Sunil Fernandes

Published: Saturday, July 4, 2015, 8:39 [IST]

Indian markets continued to show remarkable resilience during the week and ended the week higher by almost 1.2 per cent.

Buying was seen across the board in many heavyweight counters including autos and banking. IT stocks were slightly weak and did not see the best performance after Tech Mahindra guided for a disappointing quarter.

In the coming week Indian markets could perhaps face the most volatile week as events in Greece unfold. The Greece government has asked voters in the country to vote on a referendum of either "Yes" Or "No" to creditors demands on further austerity measures in returns for more aid.

In case, voters say "No" analyst feel that Greece could be headed out of the Euro, after months of uncertainty.

The event may lead to knee jerk reaction in stock markets across the globe including India. Though, India is relatively insulated from events like Greece, there is likely to be some sentimental impact.

How the markets would behave would clearly depend on the Greece referendum. Thereafter it would be the results season that kicks. Analysts are expecting a mixed quarter, though it could be much better than the previous quarter. Performance from banking stocks, particularly the PSU banking space would be eagerly watched for improvement in asset quality.

It surely is set to be a volatile week with all eyes firmly focused on Greece.

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