RBI Rate Cut's Afterglow Seen Lingering in Markets

The Reserve Bank of India's surprise rate cut on Thursday may result in more gains for bonds and interest rate-sensitive shares, which are expected to outperform.

The 10-year benchmark bond is seen moving in a 7.60-7.75 per cent band. The Nifty is seen trading between 8,200 and 8,750.

Rupee's rise is seen mild on likely RBI intervention to curb sharp gains. The currency is seen moving in a 61.70-62.50 range.

ECB's rate decision on Thursday will be watched along with other global factors, traders say.

Key events

Hindustan Unilever and Hindustan Zinc will be posting their quarterly earnings on Monday, while ITC earning are slated for Wednesday.

RBI money supply data is also expected on Wednesday.

Biocon earnings are due on Friday. RBI foreign exchange reserves, bank credit data will also be out on the same day.

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