Indian Markets close at 4 month low - Anand Rathi

Key domestic benchmarks closed on a downbeat note on Friday as the Sensex ended lower for a sixth straight session, closing at a four-month low as sentiment continued to be marred by political worries caused by DMK's decision to withdraw support to the Congress led UPA government at the Centre, a statement from the Reserve Bank of India (RBI) after a mid-quarter policy review, that the headroom for further monetary easing remains quite limited and after the European Central Bank warned Cyprus that it will cut off emergency funding for Cyprus's troubled banks if Cyprus doesn't seal a bailout deal by Monday, 25 March 2013.

The Sensex & Nifty were down broadly more than 3.5% during the week, as the selling pressure was intense throughout the week.

The sentiments were weak throughout the week, on domestic and global uncertainty with subdued and cautious investor sentiments.

On the Global front situation worsened for Cyprus's troubled banks, which again triggered the uncertainty over the Euro zone front.

Domestically also the political uncertainty after the DMK's withdrawal of support have also raised concerns over the movements and actions on reforms front by the government which was just catching pace lately but might again get staggered in the this political scenario. Also the upcoming elections will be keenly watched for the government as most of the corporate are waiting for the reform progress to happen.

Also the first leg of the Budget Session of the Parliament ended yesterday. After a one month recess, the Parliament reconvenes on 22 April 2013. The Budget Session of the Parliament ends on 10 May 2013. The government has lined up a number of key bills for consideration and passing during the ongoing Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008 which are much awaited by investor community.

The market may remain volatile in a truncated week ahead as it would be short trading week with two holidays and derivative expiry in the week. Also on global front investors will continue to monitor developments in Cyprus, where lawmakers struggled to come up with a plan to save the country from bankruptcy.

So being stock specific is the key in this volatile market.

Source : Equity Bulls

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