Market Likely To Open Green

Indian equity market closed on a flat note on Monday ahead of GDP data to be announced later in the day and the Reserve Bank of India’s monetary policy meet on Tuesday. The Sensex rose 17.47 points to 26145.67 and the Nifty declined 7.45 points to 7935.25 but the BSE Smallcap index outperformed benchmarks, rising 0.8%. The BSE Mid-Cap index rose 0.05%, underperforming the Sensex.

India's Gross Domestic Product for the second quarter (July-September) of 2015-16 grew at 7.4%. Manufacturing sector grew by 9.3% in the September quarter as compared to 7.9% in the same quarter last year. The surprise however was agricultural output, which rose 2.2% versus 2.1% in the corresponding quarter last year. The agricultural sector was expected to be a drag on growth on account of a second consecutive drought in many parts of the country. The services sector, which contributes nearly 60% to the economy, however grew at 8.8% Y-o-Y as against 10.4% in the corresponding quarter last year. Therefore above GDP data GDP data could persuade the Reserve Bank of India to keep interest rates unchanged on Tuesday.

U.S. stocks closed lower Monday, the last day of trade for November, as investors eyeing Cyber Monday sales, a key bankers meeting in Europe Thursday that could result in more stimulus efforts and the monthly U.S. jobs report on Friday. The S&P 500 closed 9.64 points, or 0.4% lower at 2,080.47 and eked out a less than 0.1% gain over the month. The Dow Jones Industrial Average slipped 78.63 points, or 0.4%, to 17,719.86 and gained 0.3% over the month. The Nasdaq Composite ended the day down 18.86 points, or 0.4%, at 5,108.67 and posted a 1.1% gain over the past month.

European stock markets moved mostly higher on Monday as investors geared up for a busy week of economic events, including inflation data and a European Central Bank meeting. The broad Stoxx Europe 600 was 0.5% higher, while Germany's DAX was up 0.9% and the CAC 40 in Paris was 0.6% higher. The U.K.’s FTSE 100 index slipped 0.3%.

Shares in Asia rose Tuesday after the International Monetary Fund added the Chinese yuan to its basket of reserve currencies. Private Caixin/Markit China Manufacturing PMI showed factory activity contracted at a slower pace than in October, fuelling hopes the economy may be slowly leveling out in response to a series of government support measures. Japan’s NIKKEI 225 index advanced 1% after the yen weakened 0.3% against the dollar on Monday. South Korea’s Kospi index increased 1.2%, while New Zealand’s S&P/NZX 50 Index rose 0.6%. The Shanghai Composite traded at flat.

A SGX Nifty 50 Index future for December delivery was up 13 points at 7,992.50. Indian market is likely to open green. Investors eye on RBI policy and domestic auto sales figure.