OUTLOOK
Today global markets are positive and we may see positive opening on our indices also.
Yesterday Banking shares gave up early gains that were spurred by talk the Reserve Bank of India (RBI) may pause its 18-month long monetary policy tightening after one more rate rise this week. Industrial output growth had slumped to 3.3 percent in July as high borrowing costs crimped demand.
Monthly inflation data is due today and is expected to set the tone for RBI's rate decision on Friday. Also advance tax numbers may help to get some sense of the direction of the markets and set the mood for the nvestors as well.
There are different views on whether the RBI will raise rates or not, but it's quite possible that the peak of the cycle is around. But rates may not start falling in a hurry, with inflation being what it is.
We maintain our cautious stance on markets for today.
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