Jul 6, 2015: Greece lurched into uncharted territory and an uncertain future in Europe’s common currency yesterday after voters overwhelmingly rejected demands by international creditors for more austerity measures in exchange for a bailout of its bankrupt economy.
Here is how India may be impacted:
Indian shares and bonds fell today, extending fears foreign investors would ride out the uncertainty by paring down riskier holdings in emerging markets.
The NSE index decreased more than 1 %, while the 10-year benchmark bond yield was up 1 basis point, after rising as much as 3 basis points earlier.
The volatility in Indian stock markets is likely to continue.
Indian markets had rallied to 2-12 month high on Friday, posting their third consecutive weekly gain. Earlier this week, markets tumbled on worries that Greece would default on its loan repayments to the International Monetary Fund.
India Rupee might depreciate: Economists say there could be some temporary volatility in the financial market and if a Greece exit happens, then rupee might depreciate.
The Indian rupee weakened to 63.5600/57 per dollar compared to its previous close of 63.44/45 in early trading.
Finance secretary Rajiv Mehrishi said the economic crisis in Greece may trigger capital outflows from India and the government is consulting the RBI to deal with the situation.