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Sensex down 134pts as Cyprus bailout weighs on global stk mkts

Last Updated: Monday, March 18, 2013 - 17:03

Mumbai: The BSE benchmark Sensex on Monday slumped by 134.26 points to end at two-week low of 19,293.20 on heavy selling in global markets on reports of a proposed bailout of Cyprus which renewed concerns over Eurozone crisis.

The Sensex, which had lost 143 points in the previous session, fell by 134.36 points, or 0.69 percent, to 19,293.20, a level last seen on March 6.

The broad-based National Stock Exchange index Nifty dropped by 37.35 points, or 0.64 percent to 5,835.25.

"The Cyprus issue created an initial panic in the Indian markets, which opened gap-down. For rest of the day, markets did recover a bit but remained on tenterhooks," said Nagji K Rita, Chairman & MD, Inventure Growth & Securities.

Finance Ministers in Euro area reached a pact on March 16 forcing depositors in Cyprus banks to share in the cost of the bailout. The country's parliament, however, is yet to vote on the proposed Euro 10 billion bailout deal with lenders.

Brokers said funds turned cautious and investors offloaded part of their positions before the Reserve Bank of India policy meeting tomorrow. ICICI Bank dropped by 1.50 percent, SBI by 0.58 percent and HDFC Ltd by one percent.

Among other interest-sensitive stocks, DLF fell by 0.84 percent, Unitech by 3.15 percent, Maruti Suzuki by 2.98 percent, Bajaj Auto by 2.06 percent and Tata Motors by 1.55 percent.
Reliance Industries also dropped by 1.45 percent and Infosys by 0.77 percent.

Sectorally, the metal sector index suffered the most by losing 2.34 percent to 9,045.62, followed auto index by 1.44 percent to 10,472.49. Realty sector index lost 1.21 percent to 2,023.53 and Banking index by 0.67 percent to 13,475.58.

Sensex down 134pts as Cyprus bailout weighs on global stk mkts

Sensex stocks like RIL, ICICI Bank, Infosys, Tata Motors, M&M, Maruti Suzuki, Tata Power, Bajaj Auto, GAIL Ind, Sterlite Ind and Tata Steel closed with sharp to marked losses.

Coal India tanked 5.41 percent on reports that the government is considering a stake sale in the PSU major. The stock also turned ex-dividend on Monday.

Outside of indices, Jet Airways slid 2.7 percent on worries over the proposed deal with Etihad.
In Sensex, 24 out of 30 Sensex-based scrips finished down. Top losers included Tata Power (3.43 percent), Gail India (3.16 percent), Maruti Suzuki (2.98 percent), Sterlite Ind (2.68 percent), Bajaj Auto (2.06 percent), Wipro (1.68 percent), Tata Motors (1.55 percent), ICICI Bank (1.50 percent), Tata Steel (1.48 percent), RIL (1.45 percent), Dr Reddy's Lab (1.27 percent), M&M (1.26 percent), and Infosys (0.77 percent).

Among sectoral indices, S&P BSE-Metal tumbled by 2.34 percent, followed by S&P BSE-PSU (1.64 percent), S&P BSE-Auto (1.44 percent), S&P BSE-Realty (1.21 percent) and S&P BSE-Oil&Gas (1.20 percent).

"RBI is likely to cut the repo rate by 25bps considering sustained moderation in core inflation, non-populist Budget showcasing commitment to fiscal consolidation and sharp slowdown in GDP growth to decade-low levels. A CRR cut is unlikely," said Amar Ambani, Head of Research, IIFL.

Meanwhile, Foreign institutional investors (FIIs) picked up shares worth a net Rs 1,018.93 crore on last Friday, as per provisional data from the stock exchanges.

The total market breadth was negative as 1,757 stocks closed with losses while 1,091 that settled with gains. Total market turnover was sharply down at Rs 1,755.57 crore from Rs 2,265.82 crore last Friday.


First Published: Monday, March 18, 2013 - 16:48
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