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Indian markets opened nearly 0.7% higher but soon erased half of its gains ahead of Reserve Bank of India's governor Shaktikanta Das unscheduled speech due after 10am on Wednesday.

At 9.30 am, Sensex rose 0.3% to 48,395 points while Nifty gained 0.37% to 14,550 points.

Das has been meeting with bankers and shadow lenders since last month to discuss topics including the current economic situation, potential stress to balance sheets, credit flows and liquidity, Bloomberg reported. CNBC reported Tuesday that bankers have requested relief, including payment moratoriums.

Global markets were mixed after US treasury secretary Janet Yellen said Tuesday afternoon she wasn’t forecasting interest-rate increases to rein in any inflation spurred by President Joe Biden’s proposed spending, clarifying comments that ruffled financial markets a few hours earlier.

While elevated covid-19 cases in several states and rising number of deaths are matters of concern, visible modest decline in new cases in many states, including Maharashtra, MP, and Gujarat offers comfort. Hence, reversal of daily caseload in India by the end of May and mid of June looks possible, analysts expect.

Market participants would be keenly watching out vaccination progress at private hospitals.

"Going forward, markets are likely to remain range-bound along with increase in volatility. On one hand, continued high incidence of covid cases, along with extended lockdowns in various states, is likely to cap the upside, while on the other, steady corporate earnings and positive management commentaries are likely to provide downside support," said Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services Ltd.

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