Archived IMT (2010.03.19)

The unexpected RATE HIKE from teh RESERVE BANK OF INIDA (first since 2008) must not be ignored especially since it occurred in an unscheduled meeting and 1 month ahead of its next scheduled meeting. This means that further tightening is ahead particularly with rates being at 3.5% and annual inflation at 9.9%. As both India and China raise interest rates, markets anticipate a potential dampening effect on oil prices and overall commodities. QUADRUPLE WITCHING DAY (simultaneous expiry of stock index futures, stock index options, stock options and single stock futures all expire) may extend the equity pullback into Asian Monday, especially as we expect the Fed to raise its discount rate next week (possibly before Bernankes speech).