Pre-Market: Markets may have a muted start

The markets are likely to react to the May IIP numbers, which were declared post market hours on Friday.

The markets are likely to open the new week on a flat note post the nervousness witnessed last week.

The BSE Sensex had slipped below the 28,000-mark and the Nifty had declined below the psychologically crucial level of 8,400 last week to settle at 27,661 and 8,360 respectively.

The markets are likely to react to the index of industrial production (IIP) numbers for the month of May, which were declared post market hours on Friday. The industrial production grew by 2.7% in May 2015 against expectations of 4.4%, led by a sharp fall in capital goods and consumer goods data. This was despite better-than-expected core sector output.

The Nifty has managed to hold on to the 8,350 level thus far. One would have to see if the index manages to reclaim the 8,400 mark. A positive outcome in the ongoing Greece talks could catapult the Nifty beyond 8,500, while a negative outcome could drag the Nifty to 8,250 and 8,000 levels eventually.

At 8.20AM, the SGX Nifty was trading virtually unchanged at 8373.

IndusInd Bank, Zee Entertainment, Mindtree, ACC, Kotak Bank Asian Paints and CRISIL would be declaring their results this week. Traders would also keep an eye on the CPI data to be announced on 13th July and WPI data on 14th July.

GLOBAL MARKETS

Asian equity markets were mostly higher on Monday, but the mood was cautious amid uncertainty over Greece as an emergency summit of euro zone leaders continues. The European ministers are currently meeting in Brussels to review conditions for Greece to start negotiating bailout terms, including controversial measures such as pension reforms. The Asian markets are trading largely in the green this morning, with the Nikkei, Taiwan, Kospi and Shanghai adding about 1% each. However, the Hang Seng index has shed 0.5%.

US stocks had closed higher on Friday on hopes that Greece would be able to secure fresh funding, which would allow it to avert bankruptcy and remain in the euro zone. The Dow Jones rose 211 points or 1.2% to 17,760 and Nasdaq Composite added 75 points or 1.5% to 4,997.

STOCK TO WATCH

JSW Infrastructure is set to be on the traders'radar after it announced plans to invest Rs 2,000 crore over the next two years to double its cargo handling capacity to 30 million tonnes (MT) per annum.

Gail India may be in the news after launching a tender to buy two liquefied natural gas (LNG) cargoes for prompt delivery, linked to demand for gas by various local fertiliser companies, Reuters said in a report quoting two trade sources.

Novartis India may see attention after the transfer of its animal health business to an affiliate of Eli Lilly in India as part of a global deal has been extended till June next year.

According to reports, MRPL has made its first purchase of Brazil's Ostra crude. Keep an eye on this counter.

M&M will reportedly seek the shareholders' approval to raise up to Rs 5,000 crore through issuance of securities on private placement basis in domestic and/or international markets.