Market Likely To Open Flat

Indian equities market fell for fourth day in a row on Wednesday as uncertainty over the fate of goods and services tax (GST) bill and global volatility following devaluation of the Chinese yuan weighed on blue chips. The Sensex was down 353.83 points or 1.3% at 27512.26, and the Nifty slipped 108.55 points or 1.3% at 8353.80. The broader markets drop more than the benchmark indices. The BSE Mid-Cap index lost 2.49%. The BSE Small-Cap index fell 2.13%.

The June IIP touched a 4-month high mainly due to a rise in government spending. India's annual industrial output growth measured by index of industrial production (IIP) grew at four month high of to 3.8 per cent in June against 4.3% a year ago. The May IIP stood at 2.7%. The cumulative growth for the period April-June 2015-16 over the corresponding period of the previous year stands at 3.2%.

Consumer price inflation (CPI) in India, as represented by Consumer Price Index (CPI), fell sharply to 3.78% in July 2015 from 5.4% in the previous month. In July last year, CPI inflation was at 7.39%. A sharp fall in CPI inflation will provide breather to the central bank, which kept interest rates unchanged earlier this month. However, the RBI will continue to keep watch on how the progress on the monsoon unfolds in August and US Fed policy outcome in September.

U.S. stocks staged a rebound in late trading Wednesday as the major indexes climbed back from sharp early losses and closed at flat. The Dow Jones Industrial Average was virtually flat, closing down 0.33 points at 17,402.51, after having been off by as many as 277 points. The S&P 500 was up 0.1% to 2,086 and the Nasdaq, which had dropped as much as 1.7% at one point, closed up 0.15% to 5,044.

European equities traded sharply lower on Wednesday as a yuan-related selloff in Asian stocks weighed on investor sentiment. The Stoxx Europe 600 index slumped 2.7% to 382.99, building on a 1.6% loss from Tuesday. Germany’s DAX index plunged 3.3%, France’s CAC 40 was 3.4% lower and Britain’s FTSE 100 was down 1.4%. The Athens Stock Exchange was 1.5% lower.

Asian stocks halted a two-day selloff on Thursday, but slightly trimmed gains after the People's Bank of China (PBOC) set the midpoint rate for the yuan at 6.4010 per dollar, weaker than the previous day's close of 6.3870. Japan's Nikkei stock index was up 0.3%, shrugging off downbeat capital expenditure figures. Japanese data released before the market open showed Japan's core machinery orders fell a greater than expected 7.9% in June, down for the first time in four months. China's Shanghai Composite index led gains in the region with a 0.45% rise.

A SGX CNX Nifty Index future for August delivery was up 14 points at 8,391. Indian markets likely to open flat on Thursday following muted trend seen in other Asian markets. Key earnings today: ABGSHIP, AJANTA PHARMA, AHLUCONT, EROS MEDIA, GUJRAT GAS, IOC, IRB, JUBLFOOD, LAOPALA, MAYURUNIQ, ONGC, PAGEIND, RAJESHEXPO, RICOH, SYMPHONY, TATAPOWER