India snubs Greece; Nifty ends above 8500, Sensex up 116pts

03:00 pm Buzzing: There is some relief for HCL Infosystems as the Supreme Court has stayed trial against the company in the National Rural Health Mission (NRHM) case.  NRHM scam was first being probed by the Central investigating agency (CBI), which had filed the first chargesheet in 2012. However, the second chargesheet in the November 2014 had named HCL Infosystems as the co-accused in a criminal conspiracy. Shares are up 6 percent now.

02:50 pm Nifty hits 8500: The market recovered all its early morning losses with the Sensex rising 21.23 points to 28114.02 and the Nifty climbing 9.70 points to 8494.60. About 1698 shares have advanced, 1035 shares declined, and 173 shares are unchanged on the BSE.

02:40 pm Gold Check: Gold prices advanced by Rs 20 to Rs 26,570 per ten grams at the bullion market on Monday on increased buying by jewellers amid a firm global trend. Silver, however, met with resistance and fell by Rs 200 to Rs 36,000 per kg.

Traders said pickup in buying by jewellers and a firm global trend on safe-haven demand after Greek voters have rejected more austerity demands from creditors, influenced gold prices.

Gold in Singapore, which normally sets price trend at the domestic front, surged 0.6 per cent to USD 1,175.45 an ounce. In the national capital, gold of 99.9 and 99.5 per cent purity advanced by Rs 20 each to Rs 26,570 and Rs 26,420 per ten grams, respectively. It had gained Rs 50 on Saturday.

Sovereign, however, continued to be traded at last level of Rs 23,300 per piece of eight gram.

02:30 pm Market Update: The Sensex gained 26.73 points at 28119.52 and the Nifty rose 13.70 points to 8498.60. About 1639 shares have advanced, 1068 shares declined, and 173 shares are unchanged on the BSE. 

02:20 pm Vedanta under pressure: Life Insurance Corporation of India (LIC) is expected to give its final decision on the Vedanta- Cairn merger on July 11. LIC, a minority shareholder in Cairn India (having 9.06 percent stake), had sought a better offer as part of the planned merger.

The corporation had demanded a better swap ratio from Vedanta. According to the deal, each Cairn India shareholder would be offered an equity share of Vedanta Ltd apart from a 7.5 percent redeemable preference share of Rs 10 face value.

While LIC is doing its due diligence, sources say Vedanta may not change any contours of the deal, but it is open to rework the coupon rate.

02:10 pm Greece FM resigns: Greece's outspoken finance minister resigned on Monday, removing a major obstacle to any deal to keep Athens in the euro zone after Greeks voted resoundingly to back the government in rejecting the austerity terms of a bailout.

Yanis Varoufakis, a self-proclaimed "erratic Marxist" economist who infuriated euro zone partners with his unconventional style and hectoring lectures, had campaigned for Sunday's sweeping 'No' vote, accusing Greece' creditors of "terrorism".

"I was made aware of a certain ‘preference’ by some Eurogroup participants, and assorted ‘partners’, for my... ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement," Varoufakis said in a statement.

02:00 pm Market Check

The market recovered smartly in afternoon trade after early morning sell off on account of Grexit fears. The broader markets rebounded with gains of more than half a percent.

The 30-share BSE Sensex dropped 82.99 points to 28009.80 and the 50-share NSE Nifty fell 18.60 points to 8466.30. However, the market breadth turned positive as about 1537 shares have advanced against 1137 shares declined on the Bombay Stock Exchange.

Samir Arora of Helios Capital says Greece developments will not have major impact on global markets in the short term. He remains bullish on Indian markets. Market corrections have given investors enough opportunities to buy, he believes.

Grexit fears triggered a sell-off in most global markets. However, the losses are contained. European markets declined 1-1.5 percent while peripheral markets dropped 1-2 percent. China, however, bucked the trend, rising 2.4 percent amid volatile trade.