Benchmark indices in Japan, Australia and South Korea advanced, even as peers on Wall Street ended lower overnight. Volumes on US exchanges slipped below 10 billion shares for the first time this year.
Investors will be keenly awaiting Reserve Bank of India’s bi-monthly policy due later today.
Analysts do not see any immediate change in the monetary policy and expect the rate-setting panel to maintain a dovish stance to address economic growth concerns, they will be on the lookout for the central bank’s views on economic recovery amid rising covid-19 cases and its update on inflation projection.
US Fed March meeting minutes will be announced on Wednesday.
On Tuesday, Indian markets erased most of their gains and closed marginally higher after more states introduced restrictions amid continuous rise in covid cases.
The Delhi government has imposed night curfew until end of April. Earlier, the Maharashtra government had imposed strict curbs in the state including a complete lockdown on weekends.
“ In the near term, we expect the markets to remain volatile as investors try to gauge the impact of restrictions imposed by state government to curb the spread of the virus. Moreover, the upcoming RBI monetary policy and earnings announcement from companies would also keep the volatility high," said Ajit Mishra, VP-Research, Religare Broking
Among stocks, Bharti Airtel will be in focus after it announced an agreement with Reliance Jio to transfer the Right to Use of the company's 800 MHz spectrum in Andhra Pradesh, Delhi and Mumbai to Jio.
Inox Leisure will be in focus after it will raise funds up to ₹300 crore through issue of securities either by way of public issue, rights issue or private placement but not limited only to QIP.
Max Financial Services will also be in focus. Axis Bank and its two subsidiaries, Axis Capital and Axis Securities, have become the co-promoters of Max Life Insurance after the completion of acquisition of 12.99% equity stake in the company.