Markets are expected to remain choppy on Wednesday amid nervousness in the global markets.
Commodity prices, led by oil, have risen sharply due to supply shortages.
Brent Crude Futures are hovering around $82 per barrel-mark, putting pressure on the rupee. The domestic currency hit a 6-week low of 74.64 per US dollar on Tuesday before settling at 74.44.
Overall, plateauing growth, inflation worries, stronger dollar, and hawkish tone by central banks is keeping global markets wobbly.
Back home, the Reserve Bank of India’s three-day policy meeting, which is set to begin later today, will be on investor radar.
While economists and bond market participants do not expect the monetary policy committee to change its accommodative stance or the repo rate, they will keenly look for hints on policy normalisation, starting with the removal of excess liquidity.
Given this, movement in bond yields may also sway the market trajectory.
That apart, stock-specific news flow, updates on Covid-19 vaccination, and foreign fund flow will guide investor sentiment.
Yesterday, the benchmark indices witnessed a sudden spurt in the latter half of the session and reversed their morning losses.
The frontline S&P BSE Sensex bounced back over 600 points from the day’s low to close 446 points higher at 59,745.
The broader Nifty50, on the other hand, shut shop above 17,800-mark at 17,822, up 131 points.
The BSE MidCap and SmallCap indices, meanwhile, closed 0.3 per cent and 0.5 per cent higher, respectively.
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