The
market is looking for some excuses to think that the deepening European
debt crisis may see some respite. A report that Italy has asked China
to make "significant" purchases of Italian debt, brought some cheer; so
much so that US markets staged a comeback.
Asian
markets have also rebounded with Japan’s Nikkei 225 in positive zone
after hitting a two-and-a-half-year low. South Korea’s Kospi remained
closed for the Chusok holiday, while Hong Kong’s equity markets were
shut Tuesday for the Mid-Autumn Festival.
European
Central Bank President Jean-Claude Trichet’s statement that the region
has enough ‘weaponry’ to stop its debt crisis from spreading brought
temporary relief.
That
makes a perfect case for a better opening at the Indian bourses. With
industrial growth plunging to a 21-month low of 3.3% in July, many may
hope that the Reserve Bank of India's monetary policy review meeting may
see a pause on rising interest rates.
