<b>Pre-mkt:</b> Markets likely to cheer Fed rate cut

Ben Bernanke has lived up to the market expectations by cutting key federal fund rate to 4.5% from 4.75%. According to Deepak Singh, this means more liquidity will be available and money inflows into emerging markets will only intensify.

The Indian markets today are likely to salute Bernanke with strong 300-500 points gap-up opening for the Sensex. The Nifty should open above 6000-mark today. With the Fed rates cut the dollar inflows will intensify making rupee stronger. FIIs waiting for Bernanke decision will now again get into the buy India mode.