No Greece effect on market

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Mumbai : Shares fell in Europe and Asia, the euro stumbled and yields on weaker euro zone economies’ bonds rose after Greece overwhelmingly voted against conditions for a rescue package, but there was no rout and contagion was limited. Investors sought low-risk assets including Bunds, but the yield premium of Italian 10-year debt over Germany remained below last Monday’s eight-month highs.The euro lost half a percent to $1.1064 and 0.6% against the safe-haven Japanese yen. It fell as low as $1.0967 in Asia before rebounding, taking some support from the resignation of Greece’s outspoken finance minister, Yanis Varoufakis.

With Greeks’ rejection of rescue package from creditors spooking markets, the government today asserted that India is well insulated from the crisis but rupee may be affected due to the outward flight of investment. Trading at the Bombay Stock Exchange today closed 115.97 points up to end on 28,208.76. At the National Stock Exchange (NIFTY), it was 37.25 points up at the close to stand at 8,522.15. The Indian currency was down 0.07 percent at Rs 63.46 per dollar.

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