Markets recover before RBI policy; yuan, hopes of rate cut buoy sentiment

Equity markets ended with gains on Tuesday ahead of the Reserve Bank of India’s (RBI) monetary policy, in which the central bank is widely-expected to cut interest rates further to boost growth and spending.

The rate-sensitive automobile and banking stocks led with the gains. A day earlier, the benchmark indices had ended at fresh five-month lows amid rising tensions between the US and China as well as the government’s bold move to abrogate the special status given to Jammu & Kashmir.

Stability returned to the global financial markets after China took steps to limit weakness in the yuan.  

After rising