Sharemasterindia.com: BSE Sensex fell sharply on Monday as the deepening Greece crisis rocked global stock and currency markets. With Greece set to default on its debt repayment, the European country has shut banks and stock markets temporarily to prevent its financial institutions from collapsing. This has raised the prospect of Greece becoming the first country to leave the currency bloc (euro) after a default.
Here is a 10-Point Cheat-Sheet
1) The Sensex plunged over 550 points while Nifty fell close to 8,200 levels in early trade. In currency markets, the rupee fell to 63.90/dollar against Friday's close of 63.64.
2) TS Harihar, chief executive and founder of HRBV Client Solutions Private, says the turmoil in global currency and equity markets could hurt Indian markets in the short term. Market analyst Pashupati Advani is hopeful that the euro zone will be able to come to a settlement on the Greece crisis over this week. He however sees some buying emerging if Nifty falls to 8,000 levels as Indian companies don't have much export exposure to Greece.
3) Stocks to watch: In the IT arena, Tech Mahindra, Wipro, HCL Tech and TCS have significant exposure to the euro zone. Among auto or auto component manufacturers, Tata Motors, Bharat Forge and Motherson Sumi have significant European business. Among the metal pack, Tata Steel and Hindalco are also significantly exposed to the euro zone.Tech Mahindra, TCS, HCL Tech and Wipro were down between 1-2 per cent. The selloff was stronger in auto stocks. Motherson Sumi fell 4 per cent, Bharat Forge 5.32 per cent and Tata Motors 3 per cent. Tata Steel and Hindalco fell 2-3 per cent.
4) Over the weekend, Greece failed to clinch a deal with its international lenders to avert a default.
5) Greece must repay IMF $1.8 billion by Tuesday or be declared a defaulter.
6) According to Reuters, twice-bailed-out Greece owes its official lenders as much as 242.8 billion euros ($271 billion), with Germany by far the largest creditor.
7) Greece has called a referendum on July 5 to decide on the cash-for-reforms terms proposed by its creditors.
8) A no vote could increase Greece's chances of exiting the Eurozone.
9) Greece imposed capital controls and ordered banks to close temporarily after the European Central Bank froze a vital financial lifeline following the breakdown of bailout talks between Athens and foreign creditors.
10) Greek banks will close until to July 6. All credit institutions in Greece, including branches of foreign banks, are affected. Daily cash withdrawals from ATMs will be limited to 60 euros.
