Pre Market Commentary ...

The RBI never fails to surprise. Just when the markets feared an all-out assault on inflation comes an unexpectedly dovish policy action. However, the policy document itself points to several pressure points – like the spike in non-food inflation, volatile crude oil prices and fiscal deficit. That means there is a chance of some inter-meeting action if the need arises. Monsoon of course remains the joker in the pack along with the global factors. 

The immediate concern is some tapering off in FII inflows. In addition, we have a long road ahead as far as earnings are concerned. Technically too, the key indices are facing some resistance. So, it makes sense to stay a little guarded in the near term although the medium-to long-term looks promising. Today we expect a follow-through rally at the start. Things might turn choppy and rangebound depending on the results and other newsflow. Stick to stock centric action and do proper due diligence to avoid any major heartburn