Market May Open Flat

On the first trading session of New Year, Indian equities as the benchmark indices opened at lower and mostly trade in negative and then ended the day on a flat note. The Nifty edged up by 1.30 points (0.02%), to 8,284 after moving between 8,294.70 and 8,248.75 intra-day and the Nifty rose nearly 30 points from its day's low to 8,278.80. However broader indices were up today. The broader markets are outperforming the benchmark indices- The BSE midcap index was up 0.65%, while the BSE smallcap index was up over 1.25%.

The Reserve Bank of India liberalised external commercial borrowings norms by increasing the choice of security that companies can provide while taking forex loans. Companies can provide immovable and movable assets, financial securities and personal guarantee to overseas banks while borrowing ECBs, the RBI said in a notice on Thursday. The banks will have to make sure that the overseas loan meets all the current norms that govern ECBs, the central bank added.

The Indian rupee was off to a bad start in the New Year as it suffered the worst single day drop in over two weeks on yesterday by falling 32 paise to end at 63.35 against the US dollar.

Both Europe and US stock market were closed yesterday for New Year's Day. Markets will reopen on Friday (Today). Stock markets in Asia were quiet on Today with China, Japan, Thailand and the Philippines all on holiday. Australia's main index eased 0.2% in early trading. The Hang Seng Index currently trading at positive by 0.33%.

For the month of December 2014, India’s HSBC Manufacturing PMI compiled by Markit Economics will be released on Today at 10.30 am. Mergers and acquisitions of PSU banks will be a major theme at the two-day 'Gyan Sangam' on January 2-3, a retreat of chiefs of financial institutions which will be attended by the Prime Minister, Finance Minister and Reserve Bank Governor.

SGX Nifty is trading in red with 13.50 points lower to 8,345.50. Today, we expect a flat opening for Indian Equities.