The key
domestic benchmarks are likely to open on a subdued note today tracking a
bearish trend in most Asian stocks as fears of a Greek exit from the 18-member
Euro area curbed risk taking appetite. Greece is headed for snap elections this
month which may result in anti-austerity parties coming into power, putting the
country’s bailout program in jeopardy and risking a Euro area exit, an event
which may have severe repercussions for global financial markets. While China’s
Shanghai Composite surged after the government freed prices of 24 commodities
and services, removing all price controls on agricultural products in the latest
set of reforms, Hang Seng fell and Japan’s Nikkei 225 was trading lower as a
stronger yen dimmed the appeal of exporter stocks. Back home, the market trend
this week will be dictated by the start of the corporate earnings season with IT
bellwether Infosys unveiling its Q3 numbers on Friday. All eyes will be on
India’s services PMI to be released tomorrow. Shares of state-run banks may be
in focus today after the country’s Finance Secretary signaled that India may
consider a proposal to create a holding company for the government’s stakes in
27 banks.
