Indian Market Likely To Open At Flat

Indian equities opted for profit- booking at higher levels amid caution in the absence of definite triggers and the first weekly drop in seven weeks. RBI keep policy rate unchanged on Tuesday which most crucial event of the week and pulled key indices at lower end during the week. Over the past week, Sensex fell by nearly 236 points (0.82%) in the last week and closed at 28,458.10 on Dec 05. Nifty lost 49.95 points (0.58%) to conclude the week at 8,538.30. The BSE Mid-Cap index rose 227.68 points (2.21%) to settle at 10,498.29. The BSE Small-Cap index gained 203.90 points (1.8%) to settle at 11,474.69. Both these indices outperformed the Sensex.

Globally, Wall Street recorded their seventh consecutive week of gains, as a series of labor reports signaled employers are hiring fast enough to drive economic growth. The Dow Jones industrial average rose by 0.7% to close at 17,958.79, the S&P 500 index picked up 0.4% to 2,075.37. However, the Nasdaq composite went down 0.2% to 4,780.76.

A surprisingly strong jobs report fueled Friday's mostly modest, albeit record-setting, advance. The U.S. economy added 321,000 jobs in November, beating the consensus number by 86,000, while unemployment rates remained steady at 5.8%.

Forthcoming global economic data: Thursday, 11 December 2014 - Weekly jobless claims data in US which will show the number of individuals who filed for unemployment insurance for the first time. Data on retail sales in November will also be announced on same day, which measure the total receipts at stores that sell merchandise and related services to final consumers. The University of Michigan's Consumer Survey will show preliminary estimates of consumer sentiment for the month of December on Friday, 12 December 2014.

The benchmark European gauge, which posted its fourth weekly advance, slid yesterday after ECB President Mario Draghi refrained from pledging QE for the euro area at the Governing Council meeting. Draghi said the ECB will reassess the situation early next year. The Stoxx Europe 600 Index climbed 1.8% to 350.97 on Friday for a fourth weekly gain. Germany’s DAX Index reached a record. Germany’s DAX Index added 2.4%, while the U.K.’s FTSE 100 rose 1%.

Asian market opens in mixed note. Japan reported very weak Q3 GDP data in the morning. Therefore, Japanese shares erased gains after breaching the 18,000 level for the first time since August 2007, while the yen moved off a seven year trough of 121.84 per dollar hit in early trade. China’s trade balance rose to 54.47B, from 45.41B in the preceding month which expected 43.15B for last month. However, Imports fell 6.7% from a year earlier, much below the forecast of 3.5%. Exports increased 4.7% from a year earlier, much weaker than the forecast of 7.9% rise. China's Shanghai index opens in red than its recover and now trading at flat.

Indian stocks could see volatility in the near term as investors take cues from inflation and factory output numbers to be announced on Friday on 12^th December. We expect Indian market will continue to consolidate during the week. Today Indian market likely to open at flat on global cues mixed.