One can expect the market to open on a strong note today. The stock markets across the Asia-Pacific region are trading higher today after Wall Street finished in positive terrain on Friday.
Last week, a number of economies announced rate cuts. A 1% interest rate cut by the U.S. Federal Reserve and its announcement of multi-billion-dollar currency swaps with central banks in Brazil, Mexico, South Korea and Singapore sent markets across the globe soaring last week. Japan, China, Taiwan and Hong Kong also announced rate cuts. On Saturday, the RBI cut the benchmark repurchase rate from 8% to 7.5%, effective today. The CRR was also cut from 6.5% to 5.5%.
The Sensex surged to touch a high of 9870 on Friday but profit booking pushed it down to 9361 before closing at 9788. Given the lower inflation, the global sentiment and the RBI’s move on Saturday, one can expect a good day for the bulls today.