Indian Markets end truncated week on a positive note - Microsec

Indian markets settled the truncated week on a positive note. However, sentiments remained subdued on renewed concern over Cyprus bailout details and possibility of similar bailout for other European economies facing banking crisis.

On domestic front, Driven by a larger Trade Deficit, India's Current Account Deficit (CAD) witnessed a sharp deterioration as it rose to USD32.6 billion, i.e. 6.7% of GDP in Q3 (October-December) of FY2012-13 against 5.4% of GDP in Q2 and 4.4% of GDP in Q3 of FY2011-12. During, Q3 of FY2012-13, Trade Deficit widened to USD59.6 billion from USD48.6 billion in Q3 of FY2011-12. Cumulative CAD for this fiscal (April-December) stands at 5.4% of GDP.

On global front, The U.S. GDP grew at a faster rate than previously estimated in Q4 (October-December) of 2012. GDP increased at an annual rate of 0.4% in Q4 compared to the previously reported 0.1% increase.

The U.S. Initial Jobless Claims increased by 16,000 to a seasonally adjusted 357,000 for the week ending March 23, 2013 from its previous week.

The U.K. GDP dropped 0.3% in Q4 of 2012, dragged down by sharp falls in industrial production and exports.

According to the news sources, big depositors in Cyprus's largest bank stand to lose far more than initially feared under a European Union rescue package to save the island from bankruptcy. Big depositors in Cypriot lender Bank of Cyprus will get shares in the bank worth 37.5% of their deposits over 100,000 euros. The rest of their big deposits may never be paid back. About 22.5% of deposits over 100,000 euros will attract no interest. The remaining 40% will continue to attract interest, but will not be repaid unless the bank does well. Conditions of the conversion of deposits into equity were expected to be announced by authorities today.

Source : Equity Bulls

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