Markets to act as strings to be pulled by RBI today

Indian markets rebounded sharply higher in trade on Monday after a tepid last week where both the benchmark indices saw their gains being erased. Key drivers of this rally were RBI Policy, short covering and easing of geo political tensions between India and Pakistan on Monday, October 03. Nifty for the day closed above, to the levels of 8725; whereas BSE Sensex closed above 28240 on October 03.

European markets ended the day with gains in the wake of rise in the shares of fund management firms. FTSE and DAX were the biggest gainers in an overall dull trading session. However, Euro Stoxx Pr and IBEX saw minor cuts at the close.

US stock markets closed lower on Friday amidst concerns related to Deutsche Bank and UK’s plan of exiting EU. Despite of good economic data, markets came under pressure. All the indices closed in the red ranging from 0.21 to 0.33 per cent respectively.

Asian markets took a breather after a stellar rally on the previous day due to a lack lustre close in the US markets. All the major markets are trading flat to green with a positive bias on Tuesday, October 4, 2016.

SGX Nifty is trading flat with downward bias to the levels of 8780. Urjit Patel’s maiden policy would be keenly watched by the markets today. We expect markets to remain volatile, until the policy announcement.