The markets are likely to kick-start the week on a cautious note. While stocks on Wall Street performed comparatively well before having shut for the week, reports of the Greek default and disappointing announcements about the US economy are expected to rub-off on the bourses.
Indian shares may come under selling pressure as gloomy factors on the gobal front continue to weigh on investor sentiment. Volatility is expected to rise as traders roll over positions on expiry of September derivatives contracts on Thursday. Investors will also closely monitor the Rupee, which last week slumped to its lowest level against the dollar in more than 28 months.
On Friday, The Dow Jones industrial average suffered its worst week since the depths of the financial crisis in 2008, stung by severe anxiety over Europe's spiraling debt crisis and a warning from the Federal Reserved about the US economy. But stocks ended higher after a disastrous four days of selling, which helped push down the S&P 500 index 6.6 % for the week. The Dow Jones industrial average gained 37.19 points, or 0.35%, to 10,771.02 on Friday. The Standard & Poor's 500 Index gained 6.83 points, or 0.60%, to 1,136.39, while the Nasdaq Composite Index gained 27.56 points, or 1.12%, to 2,483.23.
Investors will be eyeing Washington D.C. over the weekend for news on Greece as finance ministers meet at the annual World Bank and International Monetary Fund.
Close attention will be paid to public pronouncements from key European leaders and even rumors from closed-door meetings to see whether finance ministers can help Greece avoid defaulting on its debt. Any developments will dictate the mood among investors on Monday morning.
In morning trades, the Asian markets performed weak with the Hang Seng and Shanghai Composite indices trading flat while the Nikkei index shed nearly 2%.
Back home, over a year after the state-owned mining company, NMDC, announced a foray into steel making, the Mines Ministry has said this forward integration is not in the best interest of mineral development and utilisation. This could see the stock coming under some pressure in trade today.
Other stocks to watch out for include IVRCL, Tech Mahindra and Coal India.
