Sensex, Nifty, Midcap remain under pressure; rupee down too

It expects 24 percent Y-o-Y volume growth in MHCVs; for PVs, while industry volume growth on a Y-o-Y basis will likely be flattish due to the higher base effect, underlying growth momentum remains strong, it said in its note.

Note that passenger vehicle industry volumes had increased by 14 percent Y-o-Y in June-14 due to fears of a roll-back of excise duty benefits (4-6 percent) in the July-15 government budget.

On the other hand, rural volumes continue to remain under pressure, which will have some impact on 2-wheeler and tractor industry volumes, said the brokerage.

Monsoon rains so far have been 28 percent above normal. "If rainfall is good this year we can expect recovery in rural demand around the festive period (October- November). We expect 2-wheeler industry volumes to grow at around 5 percent; Honda should continue to outperform industry growth due to stronger growth in scooters," it said.

12:40 pm IndusInd sets QIP price: IndusInd Bank has fixed the floor price for its QIP at Rs 821.54 apiece.

The qualified institutional placement (QIP), which was approved by shareholders on June 08, opened on June 25 for subscription.

12:30 pm Europe opens lower: European markets reacted to Greece issue. France's CAC, Germany's DAX and Britain's FTSE 4.5 percent, 0.9 percent and 2.5 percent, respectively as the Greek crisis enters a new phase following the imposition of capital controls to prevent a run on the country's banks.

Greece's place in the euro zone now hangs in the balance following a tumultuous weekend in which last-ditch talks between Greece and its lenders broke down, prompting the European Central Bank to cap emergency funding to the country's banks at current levels.

Despite prior assurances from his government that there would be no limit on withdrawals, Greek Prime Minister Alexis Tsipras said Sunday that the country's central bank had been forced, after the ECB's move, to recommend a bank holiday and capital controls – a 60 euro limit on withdrawals from cash machines. The stock market will also be shut all week.

Left without a deal, Greece is now expected to default on a 1.6 billion euro debt due to the International Monetary Fund (IMF) on Tuesday.

After talks broke down, Tsipras called a referendum on the country's bailout program for July 5.

12:20 pm Stocks in news: Tech Mahindra issued a warning for the first quarter earnings, saying revenue and margins will show a sequential decline. The stock fell nearly 7 percent intraday, hitting a 52-week low.

Sun TV Network lost 4 percent as CNBC-TV18 learnt from government sources that the law ministry upheld the attorney general's opinion which said security clearance can be denied only if promoters are booked under the unlawful activities prevention act. Sun TV management told CNBC-TV18 that most lawyers are on the same page as the attorney general and the I&B ministry.

12:10 pm Market Expert: With the Greek default risk still on, it would be better if investors stayed out till further clarity emerges is the word coming in from Andrew Holland, CEO, Ambit Investment Advisors (AIA). Would be in a wait and watch mode for now, he adds.He personally was shocked by the announcement of referendum by Greece.He says even if Greixt does happen, it would not be an overnight process and would take months. However, if that does come about then Portugal, Italy and Ireland would be next vulnerable countries in Europe, which would send bond yields going higher over there, and in turn would have contagion effect on emerging markets (EMs), including India. It could lead to sort of re-run of 2013 summer, in terms of currency crisis around EMs.However, since India is in a much better position than it was two-year ago, so even in a worst case scenario rupee could go to levels of 65 to the dollar and not further than that, says Holland because India is not that exposed to Europe and particularly Greece.

12:00 pm Market Check:

Bears took charge on Dalal Street as Grexit fears wobbled the market. Equity benchmarks fell 2 percent with the Nifty hovering aorund the 8,200 mark. Bank Nifty led the fall. Broader markets, too, saw sharp losses, falling 2.5 percent each.

The Sensex plunged 528.20 points to 27283.64 and the Nifty dropped 167 points to 8214.10. About four shares declined for every share advancing on the Bombay Stock Exchange.

The currency market, too, took cues from the Greek crisis as the rupee weakened against the dollar, down 21 paise to 63.85/$, in-line with Asian currencies while the 10-year government bond fell to the lowest level since June 16.

Asian markets also crumbled. Shanghai fell 3 percent even as the Chinese central bank unveiled it's fourth easing package since November. Hang Seng and Nikkei dropped nearly 3 percent. Euro touched a one month low in Asian trade while the dollar-yen dropped one percent.

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