The RBI policy meet of June 17, turned out to be a non-event as anticipated by the
markets. Market also ignored the seven month high trade deficit data for the month
of May. Perhaps, Nifty was oversold at 5700 odd levels causing it to rally to 5850.
Going forward, all eyes will be on the Federal Reserve Bank over the next couple of days.
The Fed. has kept the markets guessing with regards to the future of its assets buying
programme. While one segment of the markets believes that the QE3 will be tapered
sooner than later, my own assessment is that Mr. Bernanke may probably choose to pass
on the decision making event to his successor in legacy. Perhaps Mr. Bernanke may not
want to cause a spoilsport in terms of sharp reaction in global markets.
Mr. Bernanke has got another 6 months tenure in office as the Chairman of the Federal
Reserve Bank.
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