Markets may remain range-bound; Greece, monsoon on watch

Also, investment trend by overseas investors, movement of the rupee against the dollar and crude will be key deciders

Indian indices are expected to remain range-bound in the near term, with the Greece issue and the monsoon set to dictate the direction going ahead, said experts.

Besides, auto stocks will be in focus as companies get ready to report sales data for June, starting Wednesday.

Moreover, investment trend by overseas investors, movement of the rupee against the dollar and crude will be key deciders.

"Apart from the monsoon, all eyes will be on how the Greece bailout plan unfolds as this will have a short-term bearing on global investor sentiment," said Hitesh Agrawal - Head, Research, Reliance Securities.

"Apart from this, auto monthly sales numbers would be released, which will keep the sector in focus. However, with earnings season round the corner, market participants may like to adopt a wait-and-watch approach, considering the disappointing performance of India Inc for Q4 FY15," he added.

The South-west Monsoon has covered the entire length and breadth of the country, way ahead of schedule in a year that saw a forecast of deficit rainfall for India.

"The South-west Monsoon has further advanced into remaining parts of west Rajasthan. Thus, it has covered the entire country on June 26, 2015," the India Meteorological Department (IMD) had said in its bulletin.

The normal date for the monsoon to cover entire India is July 15.

"A good start to the monsoon and a better progress so far have helped allayed investors' fears on the possibility of a rate cut. Notably, not only has the monsoon covered the entire country, but it has done so two weeks ahead of schedule despite a delayed start," Agrawal said.

On the global front, Greece is staring at a debt default as talks on the issue remain deadlocked even as the deadline approaches.

"Elevated tension on the Greek front and volatility in forex markets are keeping markets volatile currently. We believe that markets have already discounted these facts and will remain range-bound in the near term," said Rakesh Goyal, Senior Vice-President, Bonanza Portfolio.

Analysts said there could be stock-specific activity ahead of Q1 results season, which starts from the third week of July.

On Friday, the Sensex ended at 27,811.84, reflecting a weekly gain of 495.67 points, or 1.81 per cent.

The benchmark index has gained 1,386.54 points, or 5.25 per cent, in two weeks.