Market Likely To Open Flat

A benchmark index of Indian equities markets ended flat at the mark of 27,403 and 8,248 respectively due to thin trade volume in festive season and weakness in global equity markets dampened sentiment. Weak sentiment across the region on a sharp selloff in commodities overnight and political uncertainty in Greece left investors tentative to take big bets. However, infra stocks like NCC, NBCC and IRB Infra ended with gains of 3-5% each on Cabinet approving ordinance for amendments in the Land Acquisition Act.

In the broader market, both the BSE Midcap and Smallcap indices performed better than the front-liners. The BSE Midcap and Smallcap indices gained 0.4% and 0.2%, respectively.

Globally, the US stock markets were closed down in low volume trade on yesterday, positions ahead of the New Year and amid concern over political uncertainty in Greece. The Dow Jones industrial average fell 55 points (0.3%) to 17,983, the S&P 500 index lost 10 points (0.49%), to 2,080 and the Nasdaq composite was down 29 points (0.61%), to 4,777.

In economic news, data released Tuesday showed home prices rose 4.6% in October, according to the S&P/Case-Shiller Home Price Index report. That is down from a 4.8% rise in September. U.S. consumer confidence increased in December to 92.6 from an upwardly revised 91.0 the month before. It is bolstered by a brightening jobs situation that left perceptions about economic conditions at a high last seen in February 2008. November was originally reported as 88.7.

European stock markets fell on yesterday due to declines in oil prices and concerns over the political future of Greece which pushed the euro to a 29 month low. France's CAC 40 fell 1.7%, Germany's DAX dropped 1.2% and Britain's FTSE 100 was down 1.3% and Stoxx Europe 600 Index down 0.9%. The Greek’s ATG Index closed 3.9% lower Monday, declined an additional 0.5%, taking losses so far this year to nearly 30% and this month to more than 15%.

Of the major East Asia stock markets, those closed for Wednesday (Today) include the exchanges in Japan, South Korea, Indonesia, Thailand and the Philippines. The Hong Kong, Australian and New Zealand markets will be open for a half day. On Thursday, New Year's Day, all the major markets are due to remain shut. And on Friday, those in Japan, Taiwan, Thailand and New Zealand will also be closed for an extended holiday.

On the last trading day of 2014, Asian shares turned mixed early Wednesday as a set of key Chinese manufacturing data curbed risk sentiment. Low volume is expected in Asia today, with the major East Asia stock markets shuttered for the holiday season. In a fresh sign of a slowdown in China's economy, the final China HSBC PMI for December gauge sank to a seven-month low, with both output and new orders declining. The final reading came in at 49.6, up slightly from the 49.5 preliminary reading of 49.5 from HSBC/Markit, but still lower than November's 50.0. A reading above 50 indicates growth, while a reading below signals a contraction. The Shanghai Composite and the Hang Seng Index currently trading at flat.

SGX Nifty is trading marginally higher with 6 points to 8,328. Today, we expect a flat opening for Indian Equities following muted trend seen in other Asian markets.