Investor sentiments were subdued in the Indian equity markets, which were trading flat as Greece headed towards a debt payment default on Tuesday.
The barometer of the Indian equity markets - the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) - was marginally up during the mid-afternoon trade session.
Investors were anxious, as a crucial deadline for the Mediterranean nation to repay part of its debt to the International Monetary Fund (IMF) ends on Tuesday.
Analysts say that with no hope of a settlement in sight, loan default by Greece has very much been factored-in by the markets, which did not panic and plunge on Tuesday like it did during Monday's intra-day trade.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading flat. It inched-up 4.05 points or 0.05 percent at 8,322.45 points.
The 30-scrip S&P BSE Sensex, which opened at 27,627.39 points, was trading at 27,663.57 points (at 1.15 p.m.), down 18.42 points or 0.07 percent from its previous day's close at 27,645.15 points.
The Sensex touched a high of 27,762.95 points and a low of 27,570.95 points so far in the trade.
According to Angel Broking, Indian markets opened in the red tracking the SGX Nifty and global cues.
"There is a hope in the markets that the Greece referendum will pave the way for resolution of the crisis. That's why the markets have not plunged and are staying put, though marginally higher," Dipen Shah, head of the private client group research, Kotak Securities, elaborated to IANS.
The Greek government has called for a referendum to let the people decide on the terms and conditions of another bailout.
However, the wait for the result of July 5 referendum will automatically cause a default of the June 30 payment.
On June 4, Greece had deferred a payment of 300 million euro that was due to the IMF.
The Greek banking system has been forced to close by the government and financial controls have been imposed until the referendum takes place. Meanwhile, the European Central Bank has stopped the emergency funding to Greek banks.
"The investors are unwilling to chase higher prices. There is also a bargain hunting going on. The investors are waiting for prices to become more attractive. But we have also seen an increased risk-taking appetite of investors since Monday," said Anand James, co-technical head for research with Geojit BNP Paribas.
James pointed out that domestic positive cues like healthy macro conditions, growth rate and a stable economy will come back in focus each time the price falls due to the Greek crisis.
"Domestic factors like monsoon's performance during July, fiscal deficit data to be released today (Tuesday), re-rating cycle by the global agencies and the upcoming first quarter results season will come back into focus," James added.
Devendra Nevgi, chief executive of ZyFin Advisors, told IANS that the Indian markets have shown resilience towards the crisis.
"The markets are now stable. Today's trade will also depend on the European markets' performance. However, till now, Indian bond yields have gone up, the rupee is stable and the markets look decently placed," Nevgi added.
During Tuesday's intra-day trade so far, heavy selling pressure was seen in information technology (IT) capital goods, banks, technology, entertainment and media (TECK) and power sectors.
However, healthy buying took place in healthcare, consumer durables, fast moving consumer goods (FMCG), metal and realty sectors.
The S&P BSE IT index fell by 69.37 points, followed by the capital goods index plummet by 46.27 points, bank index receded by 25.81 points, TECK index slipped by 6.76 points and power was marginally down by 1.80 points.
The S&P BSE healthcare index augmented by 233.16 points, consumer durables index gained by 222.10 points, FMCG index edged-higher by 119.66 points, metal index rose by 94.46 points and realty index was up by 8.58 points.
