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Market Report

Monday, 18-Mar-2013

NSE

  • The Sensex, which had lost 143 points in the previous session, fell by 134.36 points, or -0.69 per cent, to 19,293.20 today, a level last seen on March 6. The broad-based National Stock Exchange index Nifty dropped by 37.35 points, or -0.64 per cent to close at 5,835.25 today.

  • Initially, our markets fell on heavy selling in global markets on reports of a proposed bailout of Cyprus which renewed concerns over Eurozone crisis. Brokers said funds turned cautious and investors offloaded part of their positions before the Reserve Bank of India policy meeting tomorrow.

  • Asian markets witnessed a sell-off after the Cyprus announced that it would impose a one-time 10% tax on private bank deposits in exchange for equity shares in the bank. US stocks, however, today recovered much of their losses, set off by a plan to tax bank accounts in Cyprus to help pay for the country's bailout.

  • Brokerages expect RBI to cut repo rate by 25 bps at March policy review tomorrow. However, Morgan Stanley has a contrarian view and expects the RBI to keep policy rates on hold tomorrow. Analysts don't see fireworks in market with 25-bps rate cut. In case the RBI governor doesn't go ahead with a rate cut, which seems unlikely, a sharp downward cut can be expected.

  • Slightly negative on market, says Mitesh Thacker. It should be slightly negative but we have taken more of long positions on the defensive stocks and some short on the high beta side.

  • Choppy period for the market, says Ashwani Gujral. We are not breaking down from these ranges because news flow is not good enough to take the market to a new zone so we may hang around in the zone.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)