Greece debt crisis casts its shadow on world markets, Sensex plunges
Worsening Greece debt crisis cast its shadow on world markets as the benchmark BSE Sensex tanked ...
Worsening Greece debt crisis cast its shadow on world markets as the benchmark BSE Sensex tanked over 535 points and the NSE Nifty slid below the 8,300 mark in opening trade today on across-the-board selling by participants.
A weak trend at other Asian markets was the main trigger for the plunge as investor sentiment was dampened by fears of a possible Greece default.
All the sectoral indices were trading in the negative terrain, led by realty, capital goods and banking, with losses up to 3.16 per cent.
In Asian markets, Hong Kong’s Hang Seng was down 1.41 per cent while Japan’s Nikkei slumped 1.78 per cent in early trade today.
The Greek Prime Minister risks default by calling for a referendum on debt deal, EU ministers debate “Plan B.”
On the other side, Lines at Greek bank ATMs grow longer after the government’s move to shut banks and impose capital controls.
The lines at the Greek bank ATMs grew longer in the early hours of Monday (June 29), after the government moved to check the growing strains on its crippled financial system by closing its banks and imposing capital controls in a dramatic step that brought the prospect of being forced out of the euro into plain sight.
Banks are expected to be closed all next week with a daily 60 Euro limit on cash withdrawals from cash machines, which will reopen on Tuesday (June 30). Capital controls are likely to last for many months at least.
The Greek cabinet met shortly after the decision to close the banks was announced by Prime Minister Alexis Tsipras.
“I don’t have a cashcard because if I had one, I would have taken my money out last night when I heard that he (Tsipras) called a referendum. We have no spare money, this pension is what we live on,” a person, stand in a queue, said.
The failure to reach a deal with creditors leaves Greece set to default on 1.6 billion Euros of loans from the International Monetary Fund that fall due Tuesday. Athens must repay billions of Euros to the European Central Bank in the next months.
The lines forming into the night in front of the shrinking number of bank machines with cash still available highlighted the scale of the disaster now facing Greeks, battered after more than six years of grinding economic decline.
The bank holiday announced by Tsipras is expected to last at least until Monday July 6, the day after the planned referendum. The Athens stock exchange will also be closed as the government tries to manage the financial fallout.
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