Market Likely To Open Flat

Indian equity market rose for the second consecutive session on Tuesday as investors continued to buy into beaten-down stocks even though sentiment remained broadly cautious. The Sensex closed 104.37 points up at 25,864.47, while Nifty held its key support level of 7,800 and settled at 7,837.55, up 30.95 points. The broader markets performed in line with the benchmark indices- BSE Midcap and Smallcap indices were up 0.3-0.5%.

India’s merchandise exports fell for the eleventh consecutive month in October. Exports contracted 17.53% to USD 21.35 billion in October, against USD 25.89 billion in October 2014, according to data released by the commerce ministry on Monday. The trade deficit marginally narrowed to USD 9.77 billion last month from $10.48 billion in September, the data released by the Ministry of Commerce and Industry showed.

In broader space, sugar stocks like Shree Renuka Sugars, Rana Sugars, Uttam Sugar, Mawana Sugars, Dharani Sugars and EID Parry gained 9-20 per cent due to the government may considering subsidy on cane prices and subsidy is likely to be around Rs 4.75 per quintal.

U.S. stocks gave up earlier gains to end little changed Tuesday, as falling oil prices overshadowed strong earnings from giant retailers Wal-Mart Stores and Home Depot Inc. The Dow Jones Industrial Average finishing 6.49 points, or less than 0.1%, higher at 17,489.50, after earlier trading as high as 17,599. The S&P 500 declined 2.75 points, or 0.1%, to 2050.44. The Nasdaq Composite climbed 1.4 points, or less than 0.1%, to 4986.01. On the economic front, an October reading of the U.S. consumer-price index, which showed the first increase in three months, a seasonally adjusted 0.2% rise, fell within economists’ expectations. Core prices, which exclude energy and food, rose 1.9% year-over-year.

Major European stock markets posted sharp rises as investors continue to show resilience after the deadly terror attacks in Paris and amid expectations of more monetary stimulus. Europe’s Stoxx 600 gained 2.5%. France’s benchmark CAC 40 index ended the day 2.8% higher and it was the same story in Germany as the DAX 30 index advanced 2.4%. London's FTSE 100 was up 2%.

Oil prices fell to fresh three-month lows, with the U.S. benchmark near USD 40 a barrel, on a stronger dollar and expectations of growing U.S. oil supplies. WTI settled down USD 1.07, or 2.6%, at USD 40.67 a barrel. Brent crude settled down 99 cents, or 2.2%, at USD 43.57 a barrel.

Asian shares opened mixed on Wednesday, as investors remain cautious over the latest global geopolitical developments in the wake of Paris terror attacks. Investors awaited minutes from the Federal Reserve after U.S. inflation data bolstered the case for higher interest rates. Japan’s Nikkei 225 index added 0.85% after the yen slid 0.2% against the dollar on Tuesday. Investors will be keeping an eye on the Bank of Japan's two-day meeting, which kicks off later in the day. South Korea’s Kospi index wash out initial gains and now traded at flat. Australia’s S&P/ASX 200 Index lost 0.3% and New Zealand’s S&P/NZX 50 Index rose 0.13%. Share markets in China nursed a weak open, with the benchmark Shanghai Composite slipping 051%.

A SGX Nifty 50 Index future for November delivery was down 18 points at 7,830. Indian market is likely to open flat.