Indian Market Likely To Open Flat

Indian equities indices slipped for the second successive session in volatile trade on caution ahead of the RBI policy. The Nifty slipped below the crucial 8,800-mark and settled down 11.50 points, or 0.13% at 8,797.40 and the Sensex slipped below the key 29,000 level in intra-day for the first time since January 21 and then after showing smart recovery to end at 29122.27, down 60.68 points. The broader markets were however outperforming the Sensex. The BSE mid-cap and small-cap indices were up 0.56% and 1.13% each respectively.

Auto companies reported the January sales data yesterday. January showed weakness for 2-wheeler and tractor sectors while commercial vehicle sales improved further. Bajaj Auto reported a 9% drop in January auto sales while TVS Motor posted just a 1.1% YoY growth in sales. M&M’s sales declined 6% and its tractors sales slipped 26% while Escorts’s tractors reported a 29% decline. On the other hand, Maruti recorded a 14% jump in total sales led by the near doubling in export sales. Eicher Motors posted a 25% rise in total sales. Tata Motors’s total commercial and passenger vehicles sales (including exports) in January 2015 grew 5% led by M&HCV and passenger cars. Ashok Leyland reported a 36% growth in total sales driven by M&HCV.

The U.S. stock market ended sharply higher on Monday after a late rally driven by hopes for a Greek debt deal and as a rally in oil prices propelled energy shares to strong gains. The S&P 500 index shot back up above 2000, rising 26 points, or 1.3%, to 2012. The Dow Jones industrial average jumped 196 points, or 1.1%, to 17,361. The Nasdaq composite rose 42, or 0.9%, to 4677.

European stocks were higher on Monday, after upbeat Spanish manufacturing data although concerns over Greece's future in the euro zone persisted. Germany's DAX rose 1.3%, France's CAC-40 and Britain's FTSE 100 each closed 0.5% higher. Greece’s Athex general index gained 4.64% to 755.42 points.

Greece's new finance minister won support from Paris for his effort to renegotiate the debt for its bailout. Germany has criticized Greece's stance but French Finance Minister Michel Sapin said Sunday that while his government wouldn't support canceling the debt, it was willing to consider a new time frame or terms.

Asian stocks open with positive notes however then go downwards on Tuesday. Australia’s S&P/ASX 200 Index increased 0.21% and New Zealand’s NZX 50 Index advanced 0.1%. South Korea’s Kospi index slid 0.2%. Markets in China and Hong Kong have yet to open. Japan’s Topix index and Nikkei 225 Stock Average fell by 0.3% each. The Shanghai Composite Index rose 0.5% to 3,145, halting a five-day, 7.5% slide that dragged down its relative-strength index to the lowest level in three months.