Domestic stock markets are expected to open on a flat note on Tuesday. According to experts, the focus now is on the outcomes of the RBI monetary policy review meeting that will be announced on Wednesday.

SGX Nifty at 17,860 signals a flat opening with a positive bias for Indian markets. Nifty futures on Monday closed at 17,805.95

“The MPC will further ease its pace of hike this week and deliver 25bps, with the decision possibly getting more divided in the form of a vote split, as evident from the MPC minutes. The policy tone will likely be still cautious and data dependent, but it would also reckon the need to assess monetary-policy lags of the hikes so far,” said Emkay Global in a note.

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Experts said that the market now may move beyond Adani-HIndenburb saga. It has already been discounted. With Adani now acting swiftly, one could expect a bounce back, they said while adding that the group stocks will remain volatile. Investors are now looking beyond Adani group stocks and started accumulating quality stocks in the recent correction, they added.

According to analysts, as major companies already announced their third quarterly results, market direction will be dictated by global cues, especially the behaviour of foreign portfolio investors.

The US equities declined after the monthly jobs report beat expectations, stoking fears that interest rate increases may continue longer than expected.

Ruchit Jain, Lead Research,, said : “The FII’s have covered some of their shorts on Friday but still their ‘long -short ratio’ indicates heavy short positions intact. If they start covering these positions, then it could be the major trigger for the markets to rally in the near-term. Hence, traders should keep a close watch on their positions.”