Greek people have voted for struggle and what the ruling
party likes to say "self-respect", rejecting the bailout conditions
by a 2 to 1.
PM Tspiras must be feeling encouraged by the overwhelming mandate for
defiance. Welcoming the result Greek Prime Minister Alexis Tsipras said that
Greeks had voted for a "Europe of solidarity and democracy".
"As of tomorrow, Greece will go back to the negotiating
table and our primary priority is to reinstate the financial stability of the
country," he said in a televised address.
In case they decide to work with Greek government, the other
countries on the brink of default might take a cue and try to put their agenda
on the negotiating table.
However, if they decide to eject Greece out of EU, it will
entail a human crisis of serious proportion.
A summit of Eurozone heads of state has now been called for Tuesday.
In our view, the "NO" vote has in fact put the European
authorities and IMF in a quandary. It is now more of a human rights issue than
an economic one. The decision may therefore not be simple and quick. It will be
sometime before a amicable solution is proposed.
In the meantime, global markets do not appear too perturbed, though down 1
to 1.5%. China is trading up 3.5% propped by the series of policy
measures announced over weekend.
Euro and oil are trading down and US and German bonds are trading higher.
Our market may open with ~1% gap down, but may see no further weakness due
to Greece factor. We shall be guided more by the 1QFY16 results going forward.
Nifty faces resistance at 8470 level. A decisive breakout shall establish
Nifty in 8470-8750 range for next couple of months. However a sustainable close
below 8324 shall push it back to 7860-8350 range.
For those interested in rhetoric the following is an indicative list of
companies deriving substantial revenue from Europe (not necessarily from Greece
directly).
No comments:
Post a Comment