Indian firms with exposure to Europe decline on Greece worries

Mumbai(PTI): Shares of Indian companies with exposure to Europe fell today following Greeks’ rejection of rescue package from creditors.

Tata Steel shed 0.73%, Motherson Sumi Systems fell by 0.56% and Tata Motors was down 0.31% on the BSE.

Tourism stock like Cox & Kings too slipped 1.84%. “We are more or less insulated from the proceedings in Greece with strong foreign exchange reserves, improving macros and crude again heading southwards,” said Devang Mehta, Sr VP & Head – Equity Advisory, AnandRathi Financial Services.

Greeks had yesterday rejected a rescue package from its international creditors, throwing the future of the country’s Eurozone membership in doubt.

Meanwhile, the government today asserted that India is well insulated from the crisis but rupee may be affected due to the outward flight of investment.

“This is a drama which is going to play out for sometime. We are well protected in at least three ways. Our macro- economic situation is much more stable. We have (forex) reserves. We are an economy which is still a very attractive investment destination. So I think we are relatively well insulated,” Chief Economic Advisor Arvind Subramanian said in New Delhi.

Markets had slipped into a bit of a turmoil after Greek voters overwhelmingly rejected the bailout package from the country’s creditors, which set off panic among investors here.

However, later the stock market recovered and the BSE benchmark Sensex ended at 28,208.76, up 115.97 points.