Today, after another tumultuous week, and an extended weekend, the bulls are hoping for some liberation from the recent drubbing. They could have their wish granted with global markets back on their feet. The multi-billion Pfizer-Wyeth deal, coupled with encouraging report on existing home sales and leading indicators pushed US shares higher. Some soothing remarks from Barclays and ING managed to lift the sagging spirits across the Atlantic. Shares in Japan and Australia are up sharply this morning, with rest of the Asia-Pacific markets shut on account of the Lunar New Year.As a result, markets here should get strong fillip at least in early days. Later on of course, the trade will hinge on what the RBI does in its quarterly review.
Expectations of further monetary easing are relatively muted this time around. The odds on another round of aggressive rate cuts are not quite as favourable. Still, the central bank commentary will be keenly followed. The RBI is likely to slash its GDP estimate for FY09. Apart from the RBI review, the market will also keep tabs on the earnings and global developments. Trading might turn more volatile ahead of Thursday’s F&O expiry.
