Pri-Market Commentary!

Today, technically and even sentimentally speaking, the bulls are on a roll, with the key indices posting strong gains in the past couple of weeks. The market has recovered smartly on the back of a firm global trend. The bulls have chosen to overlook the CRR hike, rising inflation, mixed corporate results and soaring oil prices.

The RBI will announce its annual monetary policy tomorrow, and there is a fair chance of the central bank maintaining its hawkish stance. Inflation rose further to 7.33% for the week ended April 12 versus 7.14% in the previous week. Experts are divided whether the RBI will go for a 25 bps increase in short-term rates. The market could get a jolt if it does announce a small rate hike. On the other hand, a status quo may prove to be a shot in the arm for the bulls.