Greece financial crisis showing effects in Indian markets as Sensex tanks by over 500 points
Indian stock markets fell sharply on Monday and bond yields rose as Greece looked set to default on its debt repayment this week, sparking concerns about foreign selling in emerging markets.
Greece closes its banks limits ATM withdrawal
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.
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 S&P BSE Sensex plunged over 600 points in trade on Monday, while Nifty broke below its crucial psychological support level of 8200 in line with other Asian markets, which were trading lower as Greece looked set to default on its debt repayment this week.
Stocks to watch: In IT, Tech Mahindra, Wipro, HCL Tech and TCS have significant exposure to the Eurozone. 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 Eurozone.
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.