Markets Await FY13 Results

This week witnessed only three trading sessions owing to the Holi and Good Friday holidays. The Sensex and Nifty closed with a gain of 0.53% and 0.55% respectively.

On the global front, Cyprus, the tiny island country in Europe, finally managed to strike a last minute deal with its international lenders to avoid bankruptcy, which had looked almost unavoidable following the protests in the country and the rejection from the country’s parliament to tax bank deposits. The idea of a ‘bad bank’ and a ‘good bank’ has finally been implemented by the policymakers and will come into force soon. With this, the country has secured a 10 billion euros bailout package and it will see the first tranche of this bailout coming its way in May 2013.

According to this new deal, Cyprus will dissolve its second largest bank, Laiki, into a bad bank, which will contain toxic assets and unguaranteed deposits (each over 100000 euros) to be taxed. The guaranteed deposits from this bank will be shifted to the largest bank of the country, the Bank of Cyprus. The large deposits in Bank of Cyprus will be frozen until there is clarity on the tax structure to be imposed on these deposits.

This week gold prices remained flat, falling 0.41% at the bullion market. Silver too witnessed a decline of 1.22% this week.

The money inflows from FIIs remained strong in the last week. They pumped in Rs 1409 crore in equities last week while DIIs ended the week in red while selling of equities worth Rs 315 crore last week. Going forward, the markets will be looking forward to the Q4FY13 results to provide some direction to the markets. Till then volatility in the markets cannot be ruled out.