Markets likely to edge lower tracking global cues

Markets are likely to open weak as Greece failed again to settle a deal with the creditors yesterday

Markets are likely to commence the July series on a lower note tracking weakness across other global peers as Greece failed again to settle a deal with the creditors yesterday.

Euro zone finance ministers ended their third meeting in a week without agreement after the three creditor institutions put a final cash-for-reform proposal on the table in a showdown with Athens' leftist government.

The early indicator, SGX Nifty has slipped 28 points at 8,401 levels.

On Thursday, benchmark indices wrapped up the trading session on a firm note following expiry of June derivative contracts. The rally was led by capital goods, financials and auto shares.  

Further, the southwest monsoon, 28% above normal as of Thursday, might cover the entire country in the next couple of days. The monsoon reached Delhi on Thursday, four days ahead of its scheduled arrival, the India Meteorological Department (IMD) said.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 280.21 crore on Thursday as per provisional data released by the stock exchanges.

GLOBAL MARKETS

Asian equities mostly declined on Friday as Greece failed again to reach an agreement with its creditors and stumbled towards a default, while major currencies like the euro and dollar drifted as the debt saga sidelined investors.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2%.

Japan's Nikkei dipped 0.1%. Despite household spending rising more than expected, inflation has remained flat, keeping alive expectation for more central bank stimulus later this year.

STOCKS TO WATCH

The Bharti group has acquired a strategic minority stake in OneWeb, a satellite internet company that seeks to provide affordable internet access in rural and remote areas across the world. Bharti Airtel will be in focus.

HDFC is set to raise $500 million through external commercial borrowing (ECB) for which it had received approval from the RBI.

Jet Airways plans to raise $400 million through non-convertible debentures or bonds to fund expansion.

ICICI Bank has reduced its base rate by only five basis points (bps) to 9.7%, to match its biggest rivals, State Bank of India (SBI) and HDFC Bank.

Tech Mahindra has bagged a 10-year strategic IT outsourcing deal from British healthcare company, Circle Health, with an estimated value of around Rs 50 billion.

Bank stocks will be in focus after the Reserve Bank of India (RBI) said that while risks to India's banking sector, as reflected by the Banking Stability Indicator and Map, have moderated marginally since September 2014, concerns remain over the continued weakness in asset quality indicated by the rising trend in stressed advances ratio of scheduled commercial banks (SCBs), especially of public sector banks (PSBs).

With Reuters input