Domestic benchmarks are expected to open higher on Wednesday, ahead of the Reserve Bank of India’s monetary policy outcome. The US stocks surged sharply after the US Federal Reserve Chair Jerome Powell’s comments were “perceived” to be dovish.

Amidst this, market experts expect a 25 basis points hike in the interest rate today by the RBI and a similar dovish comments.

NSE stock futures listed on the Singapore exchange marginally at 17,800, while Asian stocks are mixed.

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“US stocks initially rallied after Fed Chair Powell didn’t take anything back from last week’s dovish FOMC press conference. Powell’s talk with David Rubenstein didn’t reveal anything new, but it will probably go down as a missed opportunity as he could have pushed back on what the market is pricing in. Rate cut bets for next winter firmly remain intact and that should be an issue for a Fed trying to get inflation somewhere near target,” said Edward Moya, Senior Market Analyst, The Americas OANDA.

The relentless selling by foreign portfolio investors has been keeping markets under pressure, added marketmen.

Also, the FII’s have been negative on domestic markets recently as they have been selling equities in the cash segment and have formed short positions in the index futures as well, said Ruchit Jain, Lead Research,

“Their ‘Long Short Ratio’ is just around 15 percent which was last seen when the market formed a bottom in June 2022. So post all the last week’s volatility, the markets seem to have stabilised but still, the above data from FII’s and the INR are restricting the market upmove,” he added.

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