The stock markets are expected to open strong on Monday on the back of RBI's latest policy move and can ride further on a stimulus package from the Government for the economy but sustainability of positive sentiments would also depend on global trends, analysts said."The RBI move may trigger positive sentiments with interest rate sensitive sectors like realty and banking, gaining on liquidity infusion in the economy. However, the initial positive bias would gradually make way for the cues from the global markets," Ashika Stock Brokers Research Head Paras Bothra said.The RBI on Saturday announced one percentage point cut in the short-term rates at which it lends and borrows from banks, along with slew of other measures.The short-term lending rate (repo) would fall to 6.5 per cent and borrowing (reverse repo) rate to five per cent with effect from Monday. The primary liquidity made available to the system through these measures is worth over Rs 3,00,000 crore."Domestic markets have already witnessed the negatives on Friday last week. It would look forward for a stimulus package for the economy and rebound thereafter," Taurus Mutual Fund Managing Director R K Gupta said.Last week on Friday, the 30-share benchmark Sensex settled by plunging 265 points to close at 8,965 points.Analysts believe that the impact of the measures, though forward looking, would be short-lived as sentiments are already dampened."The market was anticipating such measures from the RBI.However, it would remain volatile as broadly nothing has settled for the market as of now," Bothra added.
