Market Is Likely To Open Flat

Indian equities market markets managed to post its third consecutive weekly gain as stimulus hopes in China and Japan in the wake of recent weak economic data offset disappointment from the latest batch of corporate earnings of India Inc. Sentiment also took a hit after retail inflation, based on CPI for September increased to 4.41%, from 3.74% the earlier month, on account of higher food prices. For the week: The Sensex resumed higher at 27,242.60 and hovered between a high of 27,305.04 and a low of 26,713.28 before closing at 27,214.60, showing a gain of 135.09 points or 0.50% and the Nifty also moved-up 48.45 points, or 0.50%, to 8,238.15. The BSE Mid-Cap and Small-Cap index rose 1% and 1.29% respectively. Both these indices outperformed the Sensex.

In a volatile market, the Indian rupee snapped its last 2-week winning spree against the US dollar by ending lower by seven paise at 64.81 per dollar on demand for the US currency from importers after exports declined in September. However, the domestic currency had gained by 142 paise or 2.15% in the previous two weeks.

U.S. stocks closed higher Friday for a third week of gains as investors appeared to shrug off lackluster corporate earnings, mixed economic data and also continued to focus on the prospect of the Federal Reserve holding back from raising interest rates until 2016. The S&P 500 switched between small gains and losses, but managed to close higher, rising 9.21 points, or 0.5%, to 2,033.07 and it gained 0.9% over the week. The Dow Jones Industrial Average gained 74.09 points, or 0.4%, to settle at 17,215.84, and booked a 0.8% weekly gain. The Nasdaq Composite ended the day up 16.59 points, or 0.3%, at 4,886.69 and gained 1.2% over the week.

European stocks finished higher Friday, handing the market’s benchmark a small weekly gain. The FTSE 100 index of leading British shares was up 0.6%, while Germany's DAX rose 0.4%. France's CAC 40 gained 0.6%. ECB will announce the policy decision after a monetary policy meeting in Malta on Thursday, 22 October 2015.

U.S. crude oil prices closed higher on Friday after oilfield services firm Baker Hughes released weekly data showing the U.S. oil rig count fell for a seventh consecutive week. WTI settled 1.9% higher at USD 47.26 a barrel, but logged a 4.8% loss over the week. Brent oil rallied 1.5% on Friday to USD 50.46 a barrel, but was still down 4.2% on the week.

Asian shares almost recovered in early losses on Monday except Japan, after China's third-quarter gross domestic product (GDP) beat market expectations. China’s GDP grew 6.9% in the July-September quarter, compared with 7% in the previous three months, official data showed on Monday. The street estimated the forecast of China's growth to slow to 6.8% from a year earlier. China's share markets turned positive, with the Shanghai Composite rising 0.5%. The NIKKEI 225 index in Tokyo snapped a two-day climb, falling 0.55%, while the Kospi index in Seoul swung between gains and losses with Australia’s S&P/ASX 200 Index.

A SGX CNX Nifty Index future for October delivery was down 20 points at 8,241. Indian market is likely to open flat. Gati, Gruh, HCL Tech, Heritage Foods, Hindustan Zinc, Hindustan Zinc, Kitex Garments, Orient Cement, Petronet LNG, SKS Microfinance, Tinplate nnd Ultratech Cement  would be reporting third quarter earnings today.