Indian Market Likely To Open Positive on Global Cues

Indian equities indices slipped on Monday with the Sensex closing below 28500-level, and to hit an over one-month low on profit-booking in metal, FMCG, oil and gas and power stocks ahead of the US Federal Reserve's policy meet. The Sensex closed lower by 0.23%, or 65.59 points, at 28,437.71, while the Nifty fell 0.17%, or 14.60 points, to end at 8,633.15. The broader markets too were under pressure. The BSE Midcap and Smallcap indices were down 0.3% and 0.9% respectively.

During the day, government data showed Wholesale Price Index (WPI) inflation for February dipped (-) 2.06% in February against (-) 0.39% in previous month. A sharp fall in manufacturing goods inflation (to 0.33% vs 1.05% MoM) triggered growth concerns. Analysts believe that despite sharp fall in WPI, a rising CPI may keep RBI wary of rate cuts.

The US stock market started the week with strong rally more than 1% on Monday, rebounding from last week’s losses. U.S. stock indexes showed strong gains in afternoon trading, while the U.S. dollar declined and oil prices dipped to their lowest point in six years. The Dow advanced 228.11 points, or 1.3%, to 17977.42. The S&P 500 gained 27.79 points, or 1.4%, to 2081.19. The Nasdaq composite gained 57.75 points, or 1.19%, to finish at 4,929.51.

The U.S. dollar index fell nearly 1% on Monday to trade below 100. The index gained nearly 3% in the last week as the euro dipped to 12-year lows below USD1.05.Oil prices continue to drop as U.S. benchmark crude hit a six-year low as it plunged as much as 4% to a low of USD42.79 a barrel. Brent crude hovered above USD53 a barrel.

European stocks rallied Monday on optimism over quantitative easing in the eurozone, with Frankfurt topping 12,000 points for the first time, but the euro recovered after hitting another 12-year dollar low. Frankfurt's benchmark DAX 30 soared 2.24% to a new record close at 12,167.72 points. London's FTSE 100 index rose 0.94% to close at 6,804.08 points, and the CAC 40 in Paris climbed 1.01% to 5,061.16 points.

Asian equity markets got a boost on Tuesday followed Wall Street's rise, as investors positioned for the possibility that weaker-than-expected U.S. data will prompt the Federal Reserve to adopt a cautious stance this week. Japan’s Topix index added 0.66%. South Korea’s Kospi index rose 1.52%. Australia’s S&P/ASX 200 Index gained 1% while New Zealand’s NZX 50 Index slid 0.1%. The Shanghai Composite Index advanced 0.77% to 3,477.

SGX Nifty is also trading in green and up by 44 points. Indian market may expect to open in green. Investors are keeping their focus on the Fed's policy meeting Wednesday, seeking a clearer timeline for when it will raise interest rates.