US markets reacted to Jobs data by falling as much 167 points before roaring back to close with a gain of 10 points. This reversal is seen as positive and the data has been digested and discounted by our markets in its Saturday’s short sprint.

Banking could be the sector to watch out as two media reports, one positive another negative is splashed in today’s pink papers. First the positive one; The Reserve Bank of India is set to deregulate all lending rates in the next financial year. This will provide the banks with more elbowroom to manage their loans better. The second news is negative for PSU banks. The government has decided not to take any fresh initiatives to discuss mergers and acquisitions among public sector banks, following adverse views expressed by the Reserve Bank of India and reservations from political quarters. The bank employee unions any way were against this. Private banks should hog the limelight today, if this news were to take any affect.