With reports of Greece's lenders rejecting the proposal presented by the leftist Greek Government, the European and Indian markets started sliding.

The full impact of the dramatic developments in Greece bailout saga will be felt tomorrow since the developments came close to the end of the trading today in India.

Proposal rejected

Many of the Indian financial channels are flashing 'Lenders reject Govt’s proposal' but the full details of why this was done at the official level (by the troika of the IMF, European Commission, and ECB (European Central Bank) - itself rather than before the political leaders of the EU come to grips with it at an EU summit is not immediately known.

It was reported in overseas papers that an official said (Greek Prime Minister) "Tsipras says creditors didn’t accept Greek proposals''.

It was reported that the creditors have presented a revised proposal to the Greek Government. Already, tension is mounting in Greece because of fears over over possible pension cuts.

Bailout drama unending

The Greek bailout drama is undergoing twists and turns with agencies saying that the talks on Greek bailout were continuing and the Greek Prime Minister Alexis Tsipras will meet the troika as planned.

The Greek PM was earlier quoted as having said that the creditors had rejected some proposals from his country.

These comments led to nervousness in the European markets and the Indian markets too lost some steam at the closing minutes of trading today.

It was reported later that an EU official said that nothing had broken down and the talks were on. The scheduled meeting of the Greek PM with the officials would be held as planned.

The Indian market, already facing pressure because of market expiry tomorrow, corrected rapidly with the BSE Sensex closing with a loss of 74.7 points or 0.27 per cent at 27,729.67 and the Nifty down by 20.7 points or 0.25 per cent at 8,360.85.

Barring healthcare and FMCG, all other BSE sectoral indices ended in the red. Among them, metal index fell the most by 1.57 per cent, followed by infrastructure 1.29 per cent, realty 0.93 per cent and oil & gas 0.9 per cent. On the other hand, healthcare index was up 0.71 per cent and FMCG 0.35 per cent.

Top five Sensex gainers were BHEL (+4.06%), HUL (+2.4%), Lupin (+1.83%), Sun Pharma (+1.54%) and Wipro (+1.34%), while the major losers were Hindalco (-3.7%), Tata Steel (-2.98%), M&M (-2.27%), SBIN (-1.92%) and NTPC (-1.65%).

Among the major European indices, the German DAX and French CAC were down, while FTSE of London was marginally in the green.

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