Today,the rate cut did little to help the bull’s cause on Tuesday. But global cues today point to a better start at least. Financial shares helped the US indices recoup their losses after Treasury Secretary Timothy Geithner said the vast majority of the nation’s banks have enough capital lessening fears about banks having to raise more capital.
What the Indian banks do following the RBI rate cuts will be watched. A few banks have already announced a cut. The RBI governor also indicated that banks have been exaggerating worries about fear of losing deposits.
Asian markets are higher too with Japan’s export slump slowing in March, probably indicating that signs of recession may be easing. Oil climbed from a five-week low with crude futures rising 1.4%, following stocks higher.
Avoid fresh positions for the time being and use the gains to exit or shuffle portfolio.
