Likely Greek exit, low rupee: Where can Nifty find support?

European Markets

European markets closed sharply down led by Greece’s continuing political impasse. This resulted in the yield in the peripheral markets rising sharply overnight. The 10-year yields in Spain touched 6.22% while in Italy they stand at 5.75%. Ratings agency Fitch has also warned that a disorderly default in Greece would affect the debt ratings of peripheral countries in Europe. Even the euro which is sitting at a four month low is adding to pressure on equities. Data to Watch
- EU and Germany, Italy GDP
- Germany ZEW eco sentiment Greek Exit Eminent?
In the latest from Greece, politicians have rejected calls from the president to form a technocratic government but talks continue.
Leftist leader Alexis Tsipras who boycotted the meeting outright rejected the technocrat idea but said he would attend today's talks. If the parties cannot agree on the formation of a new government then Greece would have to hold new elections next month.
Today is also the day for Greece’s repayment obligations. Some 436 million euro are due on floating rate note issued 10 years ago.
European Union finance ministers continue with their meeting today in Brussels. Yesterday, many of them went public with their criticism on Greece even bringing up the dreaded exit terminology. Europe Closing: DAX, FTSE down 2%; CAC down 2.3%; Greece down 4.5%; Italy, Spain down 2.7% US Markets
The US markets closed sharply lower just off of the low point of the day and are now sitting at three month lows. The Dow has slid for eight out of the last nine sessions and importantly, the S&P 500 fell over a percent and broke below the closely-watched 1,340 level as worries over Greece’s potential exit from the euro zone and fears over a slowdown in China kept investors on edge. The CBOE volatility index rallied to trade above 21 for the first time in nearly three months. US Closing: Dow -1% at 12695.4; S&P -1.1% at 1338.4; Nasdaq -1.1%; VIX up another 10% Data to Watch
-US Retail Sales
-US Empire State Mfg Survey
-US Consumer Price Index Asian Markets
Asian equities are weak in today’s opening. The Kospi is down 1.4%; Nikkei is down 1.3%
Shanghai is down 0.8%; Taiwan is down 0.5% and Straits is down 0.2%. Commodity Check
Crude prices fell to its low for the year amid ongoing euro zone debt concerns. Brent crude slipped more than 1% yesterday and is currently hovering around USD 111 per barrel levels.
Gold continues its declines which fell to a four-and-half month low yesterday, as the European crisis fuelled risk aversion and put pressure on the euro. The metal also erased all of its gains for the year. Currency Damage
Currencies across the globe are getting hit. The euro dropped to four-month lows on fears of Greece exiting the euro. The dollar index is holding firm above the 80 mark.
The rupee was at a record closing low of 53.97 to the dollar yesterday on all round demand from oil companies and FIIs. It is very close to its lifetime low of 54.30 now. Indian Market
And back home, amid global liquidity, the weakness is expected to continue for our market in today’s trade. Stocks in News
An MSCI review happens today and trader talk indicates Suzlon could be excluded from the MSCI Index.
In some fund action, Rakesh Jhunjhunwala has bought 10 lakh Geometric shares at nearly Rs 62 a share. With this, his total holding in the company is now a little over 10%.
News reports suggest Future group is likely to sell its 56% stake in Future Capital to Warburg Pincus for Rs 180a share, which is at a premium to its current market price of Rs 135. The deal is likely to be worth Rs 650-700 crore.
In earnings impact, IGL's bottomline came in higher than estimates at over Rs 80 crore versus Rs 69 crore year on year. Sales too came in slightly better than our poll at Rs 720 crore. Chettinad Cement board meets today to consider delisting. The stock has gone up 40% in two days.
In a CNBC-TV18 exclusive, Rajiv Bajaj says Bajaj Auto will introduce 12 new Pulsar’s and Discover’s in the next three years.
Oil Ministry sources say there is no question of a Rs 7-8 petrol price hike by OMCs as a hike may derail Parliament which is in session.
 
Eleven companies including GAIL and OIL eye stake in Mukesh Ambani's RGTIL.
Moody's says the cut in gas reserves estimate credit is a negative for Reliance Industries. Koutons Retail is looking at raising funds on May 17.
The commerce minister says a GoM on pharma is likely to meet on Friday.
 
Specialty Restaurants issue opens tomorrow. The price band is Rs 146-155. The company hopes to raise approximately Rs 180 crore.
Air India has approved asset monetisation. The ailing government carrier has endorsed pilots’ stand to monetise Rs 5,000 crore over 10-years under the recast plan. The board has also given the go ahead for Rs 7,400 crore NCD issue and will repay banks partly from this Rs 7,400 NCD proceeds. All local flights are operating as per schedule. Earnings to Watch
There is no Nifty company reporting numbers today.
From the midcaps space, Unitech, Pantaloon Retial, Aditya Birla Nuvo, Cox & Kings, Shree Cement, BF Utilities, Cummins India, MMTC, Deccan Chronicles, Gammon India, Muthoot Fin, Dishman Pharma, IL&FS Engineering, Emami Infra, India Infoline, Essel Propack, Elder Pharma, Karuturi Global, Patel Eng. Reliance Media, Videocon Inds,  Sterling Bio, EMCO, Euro Ceramics, Lyka Labs, Madras Fert, Parekh Alum,  PBA Infra, Plethico Pharma, Varun Shipping, Zenith Computers, Akzo Nobel, Amar Remedies, Austral Coke, DCM financial, Den Networks, Dhampur Sugar, Indowind Energy, JK Tyres, Mawana Sugars, Simbhaoli Sugar and Ugar Sugar. Chelsea Saldanha
chelsea.saldanha@network18online.com