Doors wide open!

"The doors we open and close each day decide the lives we live." - Flora Whittemore.

A cautious start and muted morning trade is in the offing as investors remain on tenterhooks before the RBI’s latest policy announcement. The doors remain wide open even though markets have resigned to the fact that there won’t be any rate cuts today.

The rupee and the Government’s fiscal profligacy are among the other factors playing on the RBI’s minds. While the rupee has strengthened a wee bit, lack of comfort on the fiscal front is a cause for concern.

Meanwhile, the probability of a CRR cut has gone up due to persistently tight liquidity. Still, it will be better to adopt a wait and watch approach.




Results will continue to pour in. Cairn India, Grasim and Yes Bank are among the top earnings announcements to keep an eye on.

On the global front, the Euro has climbed vs. the US dollar on optimism about an imminent deal to help Greece avoid a default. Gold has quietly risen. Oil too is firm amid geopolitical tensions.

The FIIs were net sellers of Rs 588mn in the cash segment on Monday while the domestic institutional investors (DIIs) were net sellers at Rs 4.38bn, as per the provisional figures released by the NSE.

The FIIs were net sellers of Rs 2.99bn in the F&O segment as well, according to the provisional NSE data.

Major Results Today: 3i Infotech, Biocon, Cairn India, Ceat, Eclerx, Edelweiss, Grasim, Greaves Cotton, HMT, Indiabulls Power, Indiabulls Real Estate, Indraprastha Gas, Kalindi Rail Nirman, Kirloskar Brothers, Lupin, MRPL, Prism Cement, Yes Bank and Zensar Tech.

Global Data Watch: BOJ monetary policy, Germany's PMI data (provisional), eurozone PMI data (provisional), eurozone industrial orders, Canada retail sales and Richmond Fed Manufacturing Index (January).

Other global events to keep on radar:

US President Barack Obama is due to give his annual State of the Union address to Congress in Washington on Tuesday.

The International Monetary Fund (IMF) in Washington will publish updates of its 2011 World Economic Outlook on the same day.

The World Economic Forum's Annual Meeting gathering kicks off in Davos, Switzerland and runs until January 29.

Mariano Rajoy, Spain’s new prime minister, is due to visit Berlin for talks with German chancellor Angela Merkel later this week.

A team from the International Atomic Energy Agency (IAEA) is due to begin a three-day visit to Iran to discuss the country’s controversial nuclear programme.