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Indian stock market daily closing report (March 19, 2013)

Contributed by Nirmal Bang

Indian markets experienced a bloodbath today as the markets lost more than 1.50% on account of political uncertainty. One of the UPA coalition party the DMK decided to withdraw support to the ruling United Progressive Alliance. This has sparked panic in the markets though the government claimed the stability of the union government.

The Reserve Bank of India in its mid?quarter review of the monetary policy has cut the repo rate by 25 basis points to 7.50% and CRR is kept unchanged at 4%. Though the monetary policy outcome was on expected line the negative statement by the RBI governor that the “the headroom for further monetary easing remains quite limited,” weighed on the markets

The breadth of the market was negative in today’s trade.