Nothing seems little or great in a market where we barely managed to avoid a third straight week of losses. Whether we can continue the recovery or not remains to be seen. This week is going to be an important one with the RBI set to review monetary policy on Tuesday. Consensus expectations are for a 25 bps hike in policy rates.
There are reports that the RBI could jack up rates by 50 bps. But that may not materialise given the moderation in IIP and tight liquidity. The markets will keenly listen to the RBI commentary for clues on outlook on the economy, inflation and rates.
The start today is likely to be a flat to sedate one with investors still jittery about the near-term prospects. The F&O expiry on Thursday and trading holiday on Wednesday could add to the volatility. Results will continue to hog the limelight and as will the global trend.
Overseas events to watch out for include interest rate decisions by the Federal Reserve and the BOJ and Q4 GDP data on the US and the UK.
