Alliance Research Update - Sensex, Nifty likely to open higher on firm global cues

Asian stocks have opened on a positive note on the back of a strong overnight handover and on hopes that a Greek deal is in the offing. Nikkei is trading at a near 3-week highs. While Kospi is on course for a five-day winning streak as blue chips continued to power ahead.

The Indian market is expected to open with gains for another as positive global cues seem to be supporting the bulls. On Monday, the bull stampede continued for the seventh session in a row. The Nifty crossed 8,350 and the Sensex jumps over 400 points to its highest close since June 1. Asian stocks have opened on a positive note on the back of a strong overnight handover and on hopes that a Greek deal is in the offing. Nikkei is trading at a near 3-week highs. While Kospi is on course for a five-day winning streak as blue chips continued to power ahead. China is due to put out the markit China flash Purchasing Managers Index (PMI) for June. Expectations are that the reading will come in at 49.4 picking up pace a tad bit from May's final HSBC PMI reading of 49.2.

US  stocks closed higher, following a global rally in equities, as investors cheered signs of progress in the Greece debt negotiations. The Nasdaq composite set a new closing and intraday record, topping the highs set on Thursday. European equities surged on hopes of resolution in the Greece debt talks. The German Dax closed up more than 3.5 percent, while the French CAC also gained 3.8 percent. The Athex composite leaped 9 percent. The euro group of euro zone finance ministers concluded a meeting in Brussels yesterday and will meet again later in the week on the Greek debt crisis. Euro group President said Greece's new proposals are a "welcome step" but not enough to solidify a deal.

Asset classes The euro edged lower against the US dollar, but remained higher against the yen and Swiss franc as a new cash-for-reforms offer from Greece raised hopes a tangible deal is taking shape that will help Athens avoid a default on its debts. Brent crude trades around 63 USD per barrel on concerns that US demand for gasoline may fade. Gold prices decline towards the USD 1180 mark led by strength in global equities which curbed safe-haven demand for the metal.   Domestic news Meanwhile back home, the government's picks up the pace as it races against time to meet the April 2016 deadline for goods & services tax. Sources say various reports on issues like a revenue-neutral rate should come in by the end of August. The select Rajya Sabha panel report is expected by mid-July. Hero Group has diversified in electronics sector with 'Hero Electronix'. The management says Hero Electronix will acquire a majority shareholding in Mybox Tech. Hero Electronix to add associated business lines to its portfolio over next few years L&T is set to list its infotech arm, to raise Rs 1600-1800 crore. It may dilute 10-12 percent from IT arm. Blue Dart has hiked 21 percent stake in Blue Dart Aviation to 70 percent. MBL Infra has sought shareholder nod for bonus issue of shares in ratio of 1:1.

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