Both the BSE Sensex and the NSE Nifty closed Monday's session in the red. At 4 p.m. the Sensex had dropped 173.47 points or 0.82 per cent to quote at 20,946.65. The Nifty was down 55.50 points or 0.88 per cent at 6,221.45.

Most of the sectoral indices were in the red with the major losers being banking (down 0.84 per cent), capital goods (1.04 per cent), power (1.18 per cent), auto (1.18 per cent), IT (1.25per cent) and healthcare (1.55 per cent). The major gainer was consumer durables which rose 1.74 per cent.

The top gainers on the BSE Sensex were RIL, Tata Steel, Hindalco and ITC. The top losers were SSLT, Cipla, M&M, Sun Pharma, BHEL and Dr Reddy's Laboratories.

Dhananjay Sinha, Head, Institutional Research, Emkay Global Financial Services, in his report on the economy said, "Concerns persist as the tepid Q1-Q3 FY14 GDP growth of 4.6 per cent was significantly supported by steep growth in Government expenditure (average 17.7per cent). Hence, Q4FY14 GDP numbers are likely to remain weak given the weakness in key lead indicators, the impact of earlier rate hikes and proposed steep spending cuts by the Government, largely capital spending.

The negative fiscal multiplier will compress growth in Q4FY14 and also the following quarters. There is a high likelihood that the full year FY14 output GDP growth may fall short of the Central Statistical Office’s advance estimate of 4.9 per cent and our projection of 4.8 per cent. We believe Q4 growth could be around 4.7 per cent. We continue to maintain our FY15 GDP forecast of 5 per cent.”

The volatility index, India Vix, was at 15.23, up 7.47 per cent.

The Asian markets were mostly in the red at close with the Nikkei, the Hang Seng and Straits Times indices all in negative territory. The Nikkei was down 1.27 per cent or 189 points at 14,652 at close. The Hang Seng Index was down 1.47 per cent at 22,500.67. The Straits Times Index was down 0.90 per cent at 3,082.72. The only exception was the Shanghai index, which had gained 18.93 points or 0.92 per cent to quote at 2,075.24.

On Friday the Dow Jones index and the S&P 500 closed in positive territory, while the Nasdaq was in the red. The Dow Jones Index closed up 49 points or 0.3 per cent at 16,321.71 and the S&P 500 closed at 1,859.45 points, up 0.28 per cent. The Nasdaq closed the previous week at 4,308.12, down 0.25 per cent or 10.81 points.

(This article was published on March 3, 2014)
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