Indian Market Likely To Open Flat

Indian equities indices snapped a two-day decline and Sensex recovered by around 300 points while Nifty reclaimed 8,700-mark in on yesterday, tracking higher global shares on hopes weak economic data would prompt the US Federal Reserve to leave options open on the timing of an interest rate hike. The Sensex closed 1.05% higher at 28,736.38 points, while the Nifty gained 1.04% to end at 8,723.30 points. The BSE Midcap Index surged 0.52% and the BSE Smallcap Index was 0.22% higher. Both these indices underperformed the Sensex.

U.S. Stocks ended mostly lower Tuesday as the Federal Reserve kicked off its two-day meeting on interest rate policy and investors wait for clues on when the central bank may begin raising rates. The Fed kicked off a two-day meeting on Tuesday to discuss rates, and will release a policy statement on Wednesday. The Dow Jones fell 128.34 points, or 0.71%, to 17849.08, while the S&P 500 lost 6.99 points, or 0.34%, falling to 2,074.20. Nasdaq rose 7.93 points, or 0.16%, to 4,937.43.

The price of WTI Crude fell 1.7% to dip below USD44 to USD43.14 per barrel, on continuing fears of oversupply. Raising US crude oil stocks, an increase in Libyan oil production and the chance of an agreement between Iran and the West that could ease sanctions on Iran and boost its exports all pulled prices lower. Precious and industrial metals futures fell. Gold lost USD5 to USD1148.20 an ounce, silver fell four cents to USD15.58 an ounce and copper fell three cents to USD2.63 a pound.

European equities mostly finished lower on Tuesday, as investors looked ahead to a two-day meeting by the U.S. Federal Reserve and reacted to fresh economic data. The Euro Stoxx 600 Index closed around 0.7% down. The French benchmark CAC index finished 0.64% lower and the German DAX was down 1.54%. While the London index rose 0.5% on the eve of Britain's budget announcement.

Asian equity markets posted a subdued open on Wednesday, tracking a mixed finish on Wall Street overnight as uncertainty over when the Federal Reserve will raise rates prevailed. Australian shares shed 0.6%, while Japan's Nikkei was flat. China's Shanghai Composite opened up 0.98% to a fresh seven-year high as a widening fall in February's new home prices fueled hopes of further stimulus. Home prices eased 5.7% YoY last month, more than the 5.1% drop in January.

SGX Nifty is trading in green and up by 34 points. Indian market may expect to flat. Investors are keeping their focus on the Fed's policy meeting Wednesday, seeking a clearer timeline for when it will raise interest rates. The choppiness will continue in near term, at least till the fourth quarter (Q4FY15) earnings announcement.