Indian Markets are likely to open on a softer note - Trans Scan Securities

The Indian markets are likely to open on a softer note. The Reserve Bank of India's (RBI's) move to tighten liquidity to prevent a further fall in the rupee spooked the equity and bond markets, as investors feared a reversal of the easy-money policy stance of the central bank. Government's stand on FDI may provide the much needed boost to the markets.

Overnight, US markets corrected. The market's pullback came a day after both the Dow and the S&P 500 ended at record closing highs for the third consecutive session. The S&P 500 snapped its eight-day winning streak on Tuesday after disappointing sales from Coca-Cola, while investors turned cautious on the day before the Federal Reserve chairman's congressional testimony.

Major Asian markets inched higher on Wednesday, while the dollar held a three-week low on expectations Federal Reserve Chairman Ben Bernanke will reiterate later in the day that US monetary policy is to stay accommodative. Bernanke is set to testify to Congress on Wednesday and Thursday, which could provide further clarity on when the US central bank will roll back its $85 billion a month bond-buying programme.

Source : Equity Bulls

Keywords