Greece may continue to impact Indian stock, debt market: Assocham

While the fallout of Greece crisis has largely been factored in by markets, an immediate jolt to the Indian stock and debt market is not ruled out, industry body Assocham has said. "For some time, the markets would stay in a state of flux and the rupee may lose ground if situation in Greece worsens," Assocham Secretary General D S Rawat said.

Greece is currently facing a payment crisis - it is scheduled to repay a debt of $1.8 billion to the International Monetary Fund (IMF) on June 30 - but it's believed that the country might not be in a position to meet the deadline. It becomes, therefore, imperative that "India should ring-fence itself as much as possible" by guarding its financial institutions and limiting exposure to countries where the impact of the crisis could be felt more.

"In a tumultuous global situation... we need to double our efforts to strengthen our economy in terms of domestic demand, investment and cleaning up the bottlenecks", the industry said. It added that there is a need to announce big investments and big-ticket projects should get off the ground.

Assocham also suggested that while RBI should keep a close watch on the currency movement, the government should also keep up its efforts toward improving the supply side situation to tackle inflationary issues.

However, with monsoons making a decent progress, the prospects of rural economy look far better today than about two weeks ago.

"In the worst-case scenario for Greece, Indian exports to Europe may take a hit, but the world out there is much more prepared today than was the case in 2008 when the crisis was triggered by the Lehman Brothers collapse," Rawat said.