The RBI Policy was largely expected to maintain a status quo on interest rates, however, the RBI's hawkish stance to cut rates spooked the markets, which eventually recovered in late trade. Among today's gainers were ONGC, Tata Motors, Reliance Industries and HDFC.

Among the shares that lost ground today were Jindal Steel, Mahindra and Mahindra and State Bank of India. Shares of SpiceJet rallied almost 4% following a good set of results and following brokerage firms upgrading the stock. Shares of Deccan Chronicle fell sharply after reports that the company management had pledged its shares.

Meanwhile, shares in Europe were trading mixed eagerly awaiting a meeting of the ECB scheduled for Thursday. All eyes are also on the Federal Reserve meeting of today. Expectations are running high that the Federal Reserve will either hint or announce a quantitative easing programme.

Any disappointment on this front is likely to see markets trend lower.

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