Market Likely To Open In Red

Indian equity market extending its rally for the second straight week on hopes that the Union government would look for a compromise with the Opposition leaders to pass the key goods and services tax (GST) bill in parliament, lifting the sentiment despite weak global cues. On a weekly basis, the BSE Sensex and the NSE Nifty ended higher by 259.71 points, or 1%, and 86.15 points, or 1.09%, respectively. The Sensex gained 517.67 points, or 2.02 per cent and Nifty gained 180.45 points, or 2.32 per cent, in the last two weeks. The BSE Mid-Cap index rose 126.16 points or 1.16 pc to settle at 10,984.57. The BSE Small-Cap index rose 178.13 points or 1.57 pc to settle at 11,545.84. Both these indices outperformed the Sensex during a week.

U.S. stocks closed mixed on Friday due to a 3 percent decline in oil prices. The Dow Jones Industrial Average closed 15 points, or 0.08%, lower at 17,798.5 while the S&P 500 was up by 1.24 points, or 0.06%, to 2,090. The Nasdaq was up 11.4 points, or 0.22%, at 5,128. In last week's holiday-shortened trade, the Dow Jones Industrial Average fell 0.1%, the S&P 500 index edged up less than 0.1%, and the Nasdaq Composite Index rose 0.4%.

Oil prices fell sharply in low-volume trade on Friday, as concerns about a global supply glut continued to pressure prices. The possibility of higher interest rates in the U.S., a stronger U.S. dollar and slower global economic growth, especially in China, further weighed. WTI crude oil for delivery in January tumbled USD 1.33, or 3.09%, to close the week at USD 41.71 a barrel. While Brent oil for January delivery sank 60 cents, or 1.32%, on Friday to close the week at USD 44.86 a barrel. Both crude contracts were on track for small weekly gains, but were down by roughly 9% since the start of November.

European equities ended lower on Friday, after sharp falls in China's stock markets weighed on sentiment, but losses were muted as the European Central Bank's (ECB) policy meeting next week remained in focus. The Stoxx Europe 600 SXXP fell 0.2% to 383.67. In Frankfurt, the DAX 30 shed 0.2% to end at 11,293.76, and France’s CAC 40 finished 0.3% lower at 4,930.14. The Stoxx 600 closed the week up by 0.5%, helped by Thursday’s surge of 0.9% to 384.37.

Chinese equities traded at negative after opened higher on Monday, following their worst weekly performance last week. Other Asian equities traded mostly in the red, on the back of a mixed close from Wall Street last week. While the euro hovered near seven-month low as the currency braced for the European Central Bank's monetary easing later this week. Japan's Nikkei 225 traded 63 points, or 0.32% lower at 19,820 despite uptick in industrial production and retail sales for October which data released in the morning. The Shanghai Composite fell 0.5%. Australia’s S&P/ASX 200 Index slide 0.38%. New Zealand’s S&P/NZX 50 Index increased 0.3%. South Korea’s Kospi index fell 1.61%.

A SGX Nifty 50 Index future for December delivery was down 20.5 points at 7,944.50. Indian market is likely to open in red. India’s GDP data, RBI’s fifth bi-monthly monetary policy, global macro-economic numbers, domestic auto sales numbers, rupee-dollar movement, trend in commodity prices worldwide and flows from foreign portfolio investors (FPIs) will dictate the trend on the bourses in the week ahead.