Markets around the world could take immediate cues from the success or failure of a European bailout package for cry-pus on Monday, even as Cypriot leaders debated passing a new legislation to tax bank deposits above a threshold over the weekend.
The ECB has made a 10- billion rescue passage for Cypriot banks on condition that Cyprus raise 5.8 billion by Monday.
Indian markets, which were pulled down to a four-month low last week, might experience a relief rally of 100-150 points during the truncated week if the bailout for the island nation is passed, market experts said.
However, they added, an exit of Cyprus from the EU would not have a severe impact on the Eurozone's finances as the amounts involved are petty and Cypriot banks' largest depositors are said to be Russian oligarchs, who benefit from the island's benign tax regime, and not residents.
"The impact of an exit, if at all, will in no way be similar to that when Lehman collapsed," said Rashesh Shah, chairman and CEO, edelweiss
Group. "In the unlikely event of an exit, there could be a knee jerk reaction, but it won't persist."
Agreed Saurabh Mukherjea, head of equites, Ambit Capital. "I don't expect any incremental damage being caused by Cyprus. The fear that peripheral countries like Spain, Italy, Greece and Portugal could also face a run on their banks has already been discounted by global markets. if there is bailout package of 10 million would be declared soon to loom out bankruptcy .
The ECB has made a 10- billion rescue passage for Cypriot banks on condition that Cyprus raise 5.8 billion by Monday.
Indian markets, which were pulled down to a four-month low last week, might experience a relief rally of 100-150 points during the truncated week if the bailout for the island nation is passed, market experts said.
However, they added, an exit of Cyprus from the EU would not have a severe impact on the Eurozone's finances as the amounts involved are petty and Cypriot banks' largest depositors are said to be Russian oligarchs, who benefit from the island's benign tax regime, and not residents.
"The impact of an exit, if at all, will in no way be similar to that when Lehman collapsed," said Rashesh Shah, chairman and CEO, edelweiss
Group. "In the unlikely event of an exit, there could be a knee jerk reaction, but it won't persist."
Agreed Saurabh Mukherjea, head of equites, Ambit Capital. "I don't expect any incremental damage being caused by Cyprus. The fear that peripheral countries like Spain, Italy, Greece and Portugal could also face a run on their banks has already been discounted by global markets. if there is bailout package of 10 million would be declared soon to loom out bankruptcy .
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