Indian Market Likely To Open Flat

Indian equities indices recouped all its losses in late trade supported by metals, FMCG and select oil stocks. That late spurt helped indexes recover from earlier disappointment, when the NSE index had fallen as much as 0.8%, led by a decline in lenders after the RBI left interest rates on hold. The BSE index rose 0.04% or 12.13 points to end at 28,516.59, while the NSE index ended flat at 8,660.30. The BSE Mid-Cap index rose 80.72 points or 0.74% to settle at 10,950.54. The BSE Small-Cap index jumped 131.78 points or 1.17% to settle at 11,431.08. Both these indices outperformed the Sensex.

In opting to keep the key lending repo rate unchanged, the RBI said it wanted to wait longer to assess inflationary pressures before making its next move, and give banks more time to adjust their lending rates to reflect previous rate cuts. The RBI also left the CRR, or the share of deposits which lenders must keep with the central bank, unchanged at 4%.

An early gain for U.S. stocks fizzled in late afternoon trading, leaving indexes slightly lower at the closing bell, amid concerns about the coming corporate-earnings season. The Dow Jones industrial average edged down five points, less than 0.1%, at 17,875. The Dow had been up as much as 102 points earlier. The S&P 500 index fell four points, or 0.2%, to 2,076. The Nasdaq composite lost seven points, or 0.1%, to 4,910.

Oil prices rose on Tuesday. WTI crude oil prices gained 3.5%, to USD 53.98 a barrel, its highest close since Dec. 30. Brent crude rose 98 cents, or 1.7%, to close at USD 58.10 a barrel in London.

European stocks markets have rallied on yesterday, flirting with their highest close on record, as investors reacted to M&A activity developments and economic data pointing to improvements in the economy, and as concerns eased about an interest-rate increase in the U.S. The Stoxx Europe 600 climbed 1.6% to 404.34, getting nearer to its best closing level of 405.50. The U.K.’s FTSE 100 is heavily weighted by oil stocks, rose by the most in two months, gaining 1.9% to 6,961.77. Meanwhile, Germany’s DAX 30 DAX rose 1.3% to 12,123.52.

US delivery service FedEx has reached a deal to buy Dutch rival TNT Express for 4.4 billion euros (USD 4.8 billion) in an all-cash deal that will vastly expand the American company’s operations across Europe and positioning itself to capitalize on the growth of e-commerce in Europe. But the deal will still have to pass a review from European anti-trust regulators before closing in early 2016. Regulators previously denied UPS a similar buyout deal for TNT in 2013.

Asian stocks climbed toward a nine-month high, led by Hong Kong shares, and the dollar weakened before the Bank of Japan decides policy and the Federal Reserve releases minutes of its March meeting. Japan's Nikkei 225 hit a two-week high in early trade, currently its up 83 points or 0.4% to 19,723. Australia's S&P ASX 200 index edged up in the morning session, overcoming the disappointment from the Reserve Bank of Australia's decision to hold borrowing costs steady at a record low of 2.25% yesterday. In South Korea, The benchmark Kospi index is up by 0.5%. The Hang Seng Index jumped 2.1%, the most since September, and is trading at its highest level since May 2008.

SGX Nifty is up by 20 points. Indian market is likely to open flat. February IIP data will be released on 10 April. The next major trigger for the Indian markets is Q4 results which will start from next week.