Experts are of the view that domestic factors such as monsoon, quarterly earnings, and upcoming Parliament session will be more crucial for Indian markets rather than the Greece economic crisis.
However, the Indian markets plunged today while the rupee depreciated after Greece voted 'no' to harsh bailout conditions proposed by its creditors, raising risk of a full-blown crisis in financial markets, reported the Economic Times.
The benchmark indices slightly managed to recover losses. The
"We are now in an uncharted territory. The reactions of the
But, experts are of different opinions.
He added: "The Greek event by itself probably adds a little bit more volatility to that path, but nothing more than that, and again I am sounding like a broken record over the years, but it is going to be what happens in the monsoon session of parliament."
ET has listed some factors why Indian investors should not be worried about the current crisis:
· Fall in crude oil prices & dollar strength
Nilesh Shah of Kotak
Moreover, oil prices fell sharply after Greece rejected austerity measures demanded in return for bailout money, while China rolled out an unprecedented series of steps to prevent a full-blown stock market crash.
· No impact on the
Pankaj Sharma, executive director and head of equities at Equirus Securities, is of the opinion that the importance of what Greece decided is much less today against the repercussions which were possible some 3-4 years back. Not just the contribution of Greece has shrunk in the
· Value buying
Most analysts are of the view that the current fall is more of a knee-jerk reaction, but Indian markets should be able to bounce back, and investors should use dips to accumulate quality stocks.
"People are ready with the buying side, once it gets cleared with a positive news flow for equity markets and the global markets as well," says Yogesh Mehta, VP, Group Leader - PCG Advisory - Equities, Motilal Oswal Securities Ltd in an interview with ET Now.
(Image: Reuters)