The Greek crisis is unlikely to have any impact on the Indian economy since it has only negligible exposure to the troubled Mediterranean island, fund managers said here today.
"Despite what happened in Greece, the domestic market has not been affected since we have only negligible direct linkage with Greece," UTI MF Group President for Sales and Marketing Suraj Koeley told PTI.
"Going forward, it will depend on how other EU nations like Spain and Italy in particular, which are more indebted than Greece, react to these developments," he said.
Quantum Asset Management Company (AMC) said that the Greek tragedy is not such a big event for the Indian economy, since most of its debt is owned by European governments.
"The failure of Greece is not such a big event for the Indian economy, since most of its debt of 320 billion Euros is owned by other governments. However, the European Central Bank has ringfenced other EU members by stating that it would buy their bonds," Quantum AMC Fixed Income Head Murthy Nagarajan said.
"In the domestic context, the impact is not expected to be high since exposure is very low. However, the Greece issue would increase risk aversion towards emerging markets, which would affect capital flows to our markets in the short-term," Nagarajan said.
This was evident from the way domestic markets behaved today. Despite a gap-down opening, equity and debt markets closed in the green and so did the rupee, which rose for the fifth day in a row, gaining four paise against the American greenback.
"That both capital and debt markets opened weak only to recoup later today, only shows that Greece is not a significant contributor to the euro-zone," Kotak AMC Chief Investment Officer for Debt Laxmi Iyer said.
Fund experts have advised investors not to worry about a Greek exit from the euro-zone.
