The market is likely to open lower on Tuesday mirroring mostly subdued Asian markets. Today's key event to be watched out for is the Reserve Bank of India's (RBI)'s monetary policy review for 2012-13. Investors are hoping that RBI may cut its key policy rate to spur economic growth after the latest data showed that industrial production grew by lower-than-expected 4.1% in February 2012.

After raising interest rates 13 times since early 2010, the central bank indicated in December 2011 its next move would be a reduction. Since January 2012, RBI slashed the cash reserve ratio (CRR) - the percentage of deposits that commercial banks must keep with central bank - by a combined 125 basis points, but has left rates on hold.

Key benchmark indices settled with small gains in a lackluster trading session on Monday, 16 April 2012, ahead of the Reserve Bank of India's monetary policy review for 2012-13. The BSE Sensex was up 56.44 points or 0.33% to 17,150.95.

Data released on Monday, 16 April 2012 showed wholesale price index (WPI) inflation for March 2012 rose a faster-than-expected 6.89% from 6.95% in February 2012, on higher food prices. The inflation for food articles came in at 9.94% from 6.07% in February. The WPI data for the month of January was revised upwards to 6.89% from 6.55% earlier.

Foreign institutional investors (FIIs) sold shares worth Rs 509.43 crore on Monday, 16 April 2012, as per provisional data from the stock exchanges.

Most Asian markets declined on Tuesday as soaring Spanish borrowing costs reignited investor nervousness over euro zone debt. Key benchmark indices in China, Hong Kong, Singapore, South Korea and Taiwan were down by between 0.18% to 1.02%. Key benchmark indices in Japan and Indonesia rose 0.18% and 0.27%, respectively.

US stocks ended mixed on Monday on better-than-expected retail sales, but concerns about Spain's rising bond yields kept investors on the sidelines. The Dow Jones Industrial Average rose 71.82 points, or 0.56%, to 12,921.41. But the Standard & Poor's 500 index slipped 0.69 of a point, or 0.05%, to 1,369.57 and the Nasdaq Composite index dropped 22.93 points, or 0.76%, to 2,988.40.