It is such a big morning for the markets. RBI has moved once again and raised the CRR. The global market cues are very benign and we have got a bit of tug-of-war, which will win over?

Is it the negative market cues from the rate hikes once again because rate hikes will follow the CRR hike from what all the bankers have been telling us? But to counter that at least a bit, we have got good cues from the US and the Asian and emerging markets this morning.

There is a bit of a tussle going on there. But on the evidence of what we have seen the last couple of days, one should prepare oneself for another volatile session because there is potentially fairly bad news this morning and a little bit of good global news to play around with.

The markets were extremely volatile and this morning too, you don’t know which way to go because the CRR hike will actually weigh down more than the global cues might support it.

For example, in December, the correction was triggered of by the CRR hike once again and we saw the markets melt on two days after that CRR hike. In those two days, the market lost about 600 points.

So the memory of that will be fresh, banks will probably take a bit of bath this morning and that will weigh down the Index as well. Hopefully, at some point, the global mood will arrest the slide but I expect to probably see red on the screen this morning and then a fair amount of volatile trading.

Contd on Pg 2....