Greece continues to weaken, losing cash daily: Stewart

With the weakness in the global markets continuing and European markets down, the global scenario is not very positive. In an interview with CNBC-TV18, Justin Stewart of Seven Investments said that he finds very little reason for some strength at the moment.

Apprehensions about Greece's possible exit from the euro zone is still rife and according to Stewart, "Greece is continuing to deteriorate with cash leaving the country on a daily basis. You are not going to get any notice of when Greece leaves but if nothing is done, Greece is going to find itself running out of money anyway, even potentially before the election. It is very nervous times indeed." Also Read: Will rupee retire at 60/$? Experts debate Nifty's next move Below is the edited transcript of the interview on CNBC-TV18. Also watch the accompanying video. Q: Europe has opened up with cuts of about 1.5%, do you expect further weakness coming through on the European markets? What is the sense over there with respect to Greece staying in or exiting?
A: Today is going to be a weak day. Overall, we have taken the theme coming out of Hong Kong and out of India as well. So it's going to be weaker. There is going to be very little reason to have some strength at the moment.
What is perverse of course is the underlying companies within the major euro zone stock markets are actually doing perfectly well. What you are seeing is the lack of credible political leaderships and policies.
Today we have got another EU Summit taking place where you have got the new Premier of France, François Hollande meeting the chancellor of Germany. They have got very different themes as to how they want to go about with development of the euro zone. One wants austerity, the other wants more growth.
Meanwhile, Greece is continuing to deteriorate with cash leaving the country on a daily basis. You are not going to get any notice of when Greece leaves but if nothing is done, Greece is going to find itself running out of money anyway, even potentially before the election. It is very nervous times indeed.
Perversely, this might be exactly what markets are looking for to have this final decision. It brings it to a head where Greece finally may get cut out or leaves or goes to form euro light, some form of domestic currency within the euro zone. Then that almost acts as a sea anchor being cut to let the rest of the economies and companies go.
In the meantime, investors should look at euro stocks 50 as a fascinating index, which is volatile but provide a good way of getting good access to good companies when it is discounted.