Disappointing week for Indian Equity Investors - Microsec

It was a disappointing week for equity investors as all markets - domestic and global, ended in the negative zone. The Indian markets were battered by political uncertainty, DMK pulling out of the ruling Coalition and renewed eurozone concerns. On sectoral front, Realty, PSU, Power and Metal were worst hit over the week.

On domestic front, The Reserve Bank of India (RBI) in its Mid-Quarter Monetary Policy review cut the Repo Rate by 25 bps to 7.50 percent and leaves Cash Reserve Ratio (CRR) unchanged at 4.00 percent. On global front, The U.S. Initial Jobless Claims increased by 2,000 to 336,000 for the week ended March 16, 2013 but it still remained near a five-year low.

The Cyprus parliament has finally passed three key bills in a desperate bid to rescue an EU bailout by a Monday deadline. But the contentious deposit tax has been left until Saturday to vote. Lawmakers on Friday voted to nationalize pension funds, pool state assets for a bond issue and peel good assets from bad in stricken banks. More bills will be brought for a vote over the weekend. They include a crucial one that would impose a tax of less than 1 percent on all bank deposits.

Cyprus must amass 5.8 billion euros on its own in return for a 10 billion euro bailout from the European Union. Without a deal by Monday, the European Central Bank has threatened to cut off cash for Cypriot banks, spelling certain collapse and possible ejection from the euro. However, the eurozone officials said they had still not seen all the details and would have to discuss whatever final plan Cyprus presents.

Source : Equity Bulls

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