Market Likely To Open Flat

Indian stock markets closed at five-week lows on Thursday as after the US Federal Reserve Governor reiterated the possibility of raising interest rates in December, while caution prevailed ahead of the outcome of Bihar election results, scheduled to be released on November 08. Exit polls are due later in the day. The Sensex was down 248.72 points or 0.9% at 26304.20 and the Nifty slipped 84.75 points or 1% at 7955.45. The broader markets also succumbed to the selling pressure seen on the benchmark indices with the BSE midcap and BSE smallcap indices slipping 0.84% and 0.74% respectively.

U.S. stocks ended Thursday’s session modestly lower for a second consecutive day weighed by a decline in energy stocks on a drop in oil prices and investors were also hesitant to make any large bets before the release of the government's closely watched jobs report, out Friday. The Dow Jones industrial average lost 4.15 points, or less than 0.1%, to 17,863.43. The S&P 500 index fell 2.38 points, or 0.1%, to 2,099.93 and the Nasdaq composite fell 14.74 points, or 0.3%, to 5,127.74.

Crude oil prices extended the decline for a second day in a row, with WTI futures down to USD 45.30 a barrel by the end of the US session. The commodity was hit by a large increase in US stockpiles last week, which resulted in a sharp reversal of the weekly early gains amid renewed oversupply concerns. December Brent crude edged down by 60 cents, or 1.2%, to USD 47.98 a barrel, with prices also at their lowest close in over a week.

European indices closed mostly higher on the penultimate trading day of the week, buoyed by positive earnings results that helped to offset contractions within the commodities sector and a cautiously positive economic outlook from the European Commission. The Stoxx 600 lost 0.4% at the close of trading, tracking a drop in US shares. The FTSE 100 closed 0.75% lower, the DAX edged up 0.39% and the CAC-40 was 0.64% higher.

Asian shares were in another mixed trading session on Friday, tracking the uninspiring handover from Wall Street as investors await the U.S. nonfarm payrolls report that was expected to add to the case for a Federal Reserve interest rate hike as early as next month. Japan’s NIKKEI 225 index added 0.47% as the yen held four days of losses against the dollar. South Korea’s Kospi index slipped 0.2%. Australia's S&P ASX 200 index turned postive 0.3% as the key resources sector cut losses. New Zealand’s S&P NZX 50 Index was little changed. China's key Shanghai Composite edged up 0.3%, while Hong Kong's Hang Seng index declined nearly 7% in early trade.

A SGX CNX Nifty Index future for November delivery was up 16 points at 7,988. Indian market is likely to open flat on tracking SGX Nifty and firm global markets. Exit polls indicate close contest in Bihar after record voter turnout.