Equity markets fall on Greece woes
Investors flee from riskier assets
MUMBAI: The equity markets plunged sharply on Monday in the intra-day trade as risk averse global investors pulled out money from riskier assets amidst fears about a default by Greece on its debt repayment after talks between Greece and its creditors failed to find a credible solutions to the country’s debt crisis.
After opening the day on a negative note, the Sensex nose-dived 600 points in the intra-day trade to touch the days low of 27,209.19. However, fresh buying in select index heavyweights at lower levels helped the index to recoup most of its losses and end the day at 27,645.15, down by just 166.69 points or 0.60 per cent. The Nifty ended the day at 8,318.40, losing 62.70 points or 0.75 per cent.
“Our markets will witness little lower volatility than peers as we are less impacted from the unfolding events in Greece and EU. Certain stocks in IT, pharma and auto ancillaries having significant exposure to Euro will underperform the markets. Since the Greece issue is well known for some time, it is unlikely to cause much correction,” said Nilesh Shah, MD, Kotak Mutual Fund.
Major losers on Monday include Hindalco, SBI and Tata Motors, which fell 3.55 per cent, 2.08 per cent and 2.07 per cent respectively.
( Source : deccan chronicle )