Market Likely To Open Above On Positives Global Cues

Indian equities fell for the second day with benchmark Sensex declining over 115 points yesterday on profit-booking in select bluechips after RBI kept interest rates unchanged at 8.0% in its fifth bi-monthly policy review. RBI Governor Raghuram Rajan said it could ease monetary policy early next year provided inflationary pressures do not reappear and the government controls the fiscal deficit.

BSE Sensex fell 115.61 points to close at 28444.01 and the Nifty declined 31.20 points to 8524.70. However, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.9% and 0.55%, respectively.

On the global side, U.S. market closed higher on yesterday buoyed by a better than expected reading of U.S. construction data for October and robust car sales in November. However, energy stocks were under pressure, tracking oil prices closely, while the technology sector was dragged down by a second day of losses in Apple Inc. shares.

In economic news, construction spending were up by 1.1% in October to a seasonally adjusted annual rate of USD 971 million, much higher than expected by market street. Even more significant data will come on Friday with the highly anticipated jobless data for the month of November. The Dow Jones industrial average gained 102.75 points (0.6%), to 17,879.55, while the Nasdaq composite rose 28.46 points, (0.6%), to 4,755.81.

U.S. auto sales were up 6% in October as lower gas prices, longer financing arrangements and increased consumer confidence are pushing American car buyers toward bigger, more expensive cars. Offering fresh evidence of a sustained rebound in the U.S. automotive industry, most major manufacturers saw multi-year highs or all-time highs in sales volume in October.

Elsewhere in Europe, Germany's DAX slipped 0.3%, while France's CAC 40 inched up 0.3%. In the U.K., the FTSE 100 index of leading British shares gained 1.3%. The Stoxx Europe 600 Index added 0.5% to 347.37 at the close of trading and climbed as much as 1%. The ECB’s next policy meeting is on Dec. 4.

Asian market opens in green. Japanese stocks rose for a fourth day, with the Topix index poised for its highest close since 2007, as cars and tires making companies advanced after the yen weakened and U.S. auto sales beat estimates. Yesterday, the Shanghai Composite Index jumped to close at its highest level since July 2011. Hong Kong's Hang Seng and China's Shanghai index both are trading in positive by 0.61% and 1.25% respectively. The SGX Nifty is open with flat and currently lower 1 point down at 8,568. Indian market is expected to open above on back of positives global cues. However going forward it may consolidation during a day.