Indian Markets settle sharply lower for 5th consecutive week - Microsec

Indian equity markets settled sharply lower for the fifth consecutive week as investors expressed broad disappointment over the budget. Indices fell below three month low. On the other hand, weak global cues also dampened the market sentiment.

On domestic front, India's GDP growth for Q3 (October-December) of FY2012-13 came in at a decade low of 4.5 percent YoY against 5.3 percent YoY last quarter. The decline in GDP was blamed on slowdown in the Services sector. The only silver lining is the modest recovery of Investment and Manufacturing sector. Fixed Investment grew by 6.0 percent YoY - highest rate in last six quarters. In addition, 2.5 percent YoY growth in Manufacturing sector also the highest in last five quarters. Growth in the first nine months (April-December) of this fiscal year stood at 5.0 percent YoY, down from 6.6 percent YoY in the year-ago period.

India's Eight Core Industries grew 3.9 percent YoY for the month ended January 2013 against 2.5 percent YoY in December 2012.

India's HSBC Manufacturing Purchasing Managers' Index (PMI) increased to 54.2 in February 2013 from 53.2 in January 2013.

On global front, The U.S. President Barack Obama has signed into effect a wave of steep spending cuts which he has warned could damage the US economy. The cuts - known as the sequester and drawn up two years ago - will total $1.2 trillion over nine years, with $85 billion set to take effect in the remaining seven months of this fiscal year.

The U.S. GDP for Q4 (October-December) of 2012 has been revised from showing contraction to growth. The economy had grown at an annualised 0.1 percent in Q4. The first estimate was a 0.1 percent contraction.

Source : Equity Bulls

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