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Monday, January 27, 2014

Markets Open in Green After Yesterday’s Pull

Indian markets defied the previous session’s surprise gravitational pull and opened in the green, inspite of the SGX indicating a continuation of the weakness from the previous evening. Leading the pullback, surprisingly, were some heavy weighted banking stocks in the NIFTY, on the back of expectation of a CRR cut in the RBI policy announcement that is due in a couple of hours from now. While the broad consensus is that RBI Governor Dr. Rajan, is most likely to continue his stance to rein in inflation, there is a growing lobby of expectation that he would start doing something to prod growth too through the monetary policy route. Defensive such as the leading PHARMA and FMCG stocks buoyed by announcement of good earnings are also seeing some buying in an otherwise buying-averse market. Global cues that have softened overnight, are likely to give direction to our market as well, beyond the impact of the RBI Policy announcement. Markets are expected to be range bound, with a strong –ve bias for the rest of the week.

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