Post session - Quick review

Indian equity markets again witnessed a dismal session of trade, wherein benchmark equity indices after making a gap down start went on losing ground to conclude down in dumps. Although, some recovery emerged in the last hour of trade but it was too little to result in any turnaround. Markets witnessed a gloomy session of trade on account of feeble global cues, with prevailing caution ahead of RBI’s mid-quarterly monetary policy, also discouraging investors of opening any fresh bets. In the uninspiring session of trade, benchmark 30 share index, Sensex, offloaded close to 150 points, to shut shop below the crucial 19300 level. Likewise, 50 share index, Nifty, too taking a knock of over 50 points, ended below psychological 5850 mark. Broader indices were not spared too clocking losses of over 0.25% Midcap Index and 0.50% Smallcap Index on the BSE.

Markets across the globe took a hit for the worst after an unusual bailout proposal for Cyprus rattled investor nerves, thereby leading them to resort the safety of US dollar, gold and sovereign debt. The surprise decision by euro zone leaders to part-fund for rescue of Cyprus by taxing bank deposits sent shockwaves through financial markets on Monday. The euro zone struck a deal on Saturday to hand Cyprus a bailout worth 10 billion euros ($13 billion), but defied warnings - including from the European Central Bank - and imposed a levy that will see those with cash in the island's banks lose between 6.75 and 9.9 percent of their money.

Closer home, reports which highlighted of high food inflation being credit negative, also weighed on investors’ sentiment. Moody's Investors Service in a report has said that India's high food inflation is negative for the country's sovereign ratings and it has a potential to hurt government finances and monetary policy flexibility. Sectorally, Metal, Public Sector Undertaking (PSU) and Auto stocks were amongst the worst performers, while stocks from Fast Moving Consumer Goods and Consumer Durable space showcased exceptional performance. Meanwhile, sugar stocks hogged limelight on expectation that the government may ease control on sugar prices. The cabinet committee on economic affairs (CCEA) is likely to discuss freeing of sugar prices and the proposed food security legislation today. On the flip side, State-run oil retailers tanked after lowering petrol prices by 2 rupees per litre, while keeping diesel prices steady, Indian Oil Corp, Bharat Petroleum Corporation, Hindustan Petroleum Corporation offloaded 2% each. Additionally, private bank shares, namely, ICICI Bank, Axis Bank and  HDFC Bank, edged lower after  Finance ministry and RBI started  investigating allegations of money laundering practices at these top private sector lenders. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1110: 1740 while 119 scrips remained unchanged. (Provisional)

The BSE Sensex lost 138.18 points or 0.71% to settle at 19289.38.The index touched a high and a low of 19345.42 and 19232.23 respectively. 6 stocks were up, while 24 stocks declined on the index. (Provisional)

The BSE Mid cap and Small cap indices ended lower by 0.25% and 0.64% respectively. (Provisional)

On the BSE Sectoral front, FMCG up by 0.72%, Consumer Durables up by 0.44% and Health Care up by 0.19% were the only gainers, while Metal down by 2.39%, PSU down by 1.80%, Auto down by 1.33%, Oil & Gas down by 1.32% and Realty down by 1.21% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Cipla up by 1.76%, Hindustan Unilever up by 1.20%, ITC up by 0.74%, HDFC Bank up by 0.51% and Hero MotoCorp up by 0.11%, while,  Coal India down by 5.63%, Tata Power down by 3.63%, Gail India down by 3.19%, Maruti Suzuki down by 2.99% and Sterlite Industries down by 2.78% were the top losers in the index. (Provisional)

Meanwhile, India Ratings, which was formerly known as Fitch India, a wholly-owned subsidiary of global rating agency major Fitch Group, has stated that the worst may be over for India’s economy but uncertainty still lies ahead, and qualitative fiscal reforms are necessary to evade any further bad news. It has expressed hopes that if handled properly and executed well, then there is only good news ahead for the Indian economy.

India’s credit rating was put on a negative outlook by various agencies including Fitch last year due to a slowdown in economic growth rate and lack of economic reforms. A negative outlook means a potential downgrade from the current rating.

Another rating agency Standard & Poor's (S&P) has also put India on a negative outlook, but it recently said that the outlook could be revised to 'positive' if the government implements initiatives to reduce structural fiscal deficits, improves investment climate and increase growth prospects.

Though, Moody's one of the major rations agency has said India's high food inflation is negative for the country's sovereign ratings and it has a potential to hurt government finances and monetary policy flexibility. However, in its India outlook report that it had said that the worst may be over for the Indian economy and the GDP growth rate could bounce back to 7% from 2014 onwards after bottoming out in the quarter ended December 31, 2012.

India VIX, a gauge for markets short term expectation of volatility gained 4.55% at 15.85 from its previous close of 15.16 on Friday. (Provisional)

The CNX Nifty lost 38.80 points or 0.66% to settle at 5,833.80. The index touched high and low of 5,850.20 and 5,814.35 respectively. 11 stocks advanced against 39 declining ones on the index. (Provisional)

The top gainers on the Nifty were Cipla up by 2.15%, HCL Tech up by 1.38%, Siemens up by 1.18%, Hindustan Unilever up by 1.12% and ITC was up by 1.01%. On the other hand, Coal India down by 5.72%, IDFC down by 3.49%, Tata Power down by 3.44%, Ambuja Cements down by 3.09% and Maruti Suzuki down by 3.09% were the top losers. (Provisional)

All European markets were trading in red with, Germany’s DAX down by 1.03%, the United Kingdom’s FTSE 100 down by 0.63% and France’s CAC 40 down by 1.24%.

Asian markets ended with sharp fall on Monday as a controversial bailout plan for Cyprus that will impose a tax on bank deposits in return for financial, added to the worries about Europe's debt crisis. The Japanese stock market closed with heavy losses after touching 10 months low on the back of profit-taking after recent strong gains. Shanghai Composite went home with red mark as China’s property developers stretched losses. Meanwhile, Hong Kong also ended in the negative territory.