Tuesday, January 25, 2011

All eyes on RBI meeting today, Street factors in 25 bps rate hike

The Dow Jones Industrial Average finished within striking distance of 12,000 Monday, fueled by weakness in dollar and buying interest in tech stocks. Bank home RBI policy meeting today is keenly observed by the Street. While the markets are discounting 50 bps rate hike, Mr.Subba Rao might surprise with a 25 bps hike.


Markets - Ranged

We expect Nifty to close between 5700-5800 for the expiry on thursday. With the Street shutting tomorrow on the eve of Republic Day, we might see a volatile trade today as RBI policy decision is key to the road ahead.

Midcap and smallcap stocks have slowly started the upward journey. We are upbeat on Indian economy and same with stocks.