Pre-market: Cautious opening likely, eyes on RBI meet

All eyes will be on Reserve Bank of India today as its reviews the Monetary Policy later in the day, which will also impact the way markets shape up. Overnight, the Dow Jones industrial average dipped 0.28 per cent at 12,685.28 and the Standard & Poor's 500 Index lost 0.20 per cent to 1,312.77.

The euro retreated from a three-week high on Tuesday while Asian shares edged higher as crucial negotiations over Greek debt
restructuring suffered another major setback, raising the spectre of default. Activity was thin, however, with many Asian markets still closed for the Lunar New Year holiday.

The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent, while Japan's Nikkei average inched up 0.3 per cent.

Back home, analysts suggest that the Nifty needs to break and sustain above its recent high of 5,064 in order to keep the upward momentum intact. The SGX Nifty was trading flat at 5,096 levels, up 19 points.

Among individual stocks, watch out for interest rate sensitive stocks such as autos, realty and banks as they react to the Monetary Policy review.

Ashok Soota, former chairman of IT firm MindTree, has sold 1.35 million shares of the company through an open market transaction. This is likely to bring the stock back in focus today.

Disinvestment in MMTC may not be possible in the immediate future as the market conditions are not appropriate, a top Commerce Ministry official has said. This could bring the stock under pressure today.

GAIL and Kotak Mahindra Bank could also be in limelight today on reporting an increase of 13 per cent and 47 per cent, respectively in net profit for the quarter ended December 2011.

Also keep a tab on Cairn India, Lupin, Grasim and Biocon as they announce their respective December quarter results.