Market Likely To Open Flat

Indian equity market ended on a flat note as the Reserve Bank of India kept its key rates unchanged. Raghuram Rajan said that the central bank is always vigilant on commodity prices, especially food and oil, even while tracking inflationary expectations and external developments. It had projected inflation to reach 5.8 per cent in January 2016. The Sensex ended on a flat note, up 24 points at 26,169 and the Nifty advanced 20 points to close at 7,955. Broader markets outperform benchmark indices. The BSE mid-cap index jumps 0.7% and the small-cap index advanced 0.5%.

U.S. stocks closed near session highs Tuesday, the first trading day of December, shaking off intraday pressure from weak manufacturing data. The Dow Jones Industrial Average closed up 168.43 points or 0.95% to 17,888.35. The wider S&P 500 index rose 22.22 points or 1.07% to 2,102.63 while the Nasdaq index gained 47.64 points or 0.93% to 5,156.31.

US economic data offered the market mixed news. Data showed construction spending was near an eight-year-high in October. It rose by 1% to a seasonally adjusted USD 1.1trn - the highest level since December 2007. Whereas an index of factory activity fell to 48.6 from 50.1 the previous month, the Institute for Supply Management said Tuesday. A reading above 50 means the sector is expanding; below 50 indicates contraction. Economists expected a rise to 50.5. It is the first time since November 2012 that the index has fallen below 50.

European stock markets stuttered and the euro clawed back some ground against the US dollar yesterday as investors had second thoughts about sky-high expectations of European Central Bank easing this week. The pan-European Stoxx 600 slipped, finishing down 0.3%. Both France's CAC and Germany's DAX closed down 0.9% and 1.1% respectively, while London's FTSE bucked the trend, finishing up around 0.6%.

Asian stocks stuttered in early trade on Wednesday after downbeat U.S. manufacturing data raised concerns about the health of the world's biggest economy. Japan's Nikkei 225 dipped 0.2%, Australia’s S&P/ASX 200 Index traded at flat and South Korea's Kospi index shed 0.15%. The Shanghai Composite gave a positive start and thereafter bounces back; advance 1.31%.

A SGX Nifty 50 Index future for December delivery was up 16 points at 8,001. Indian market is likely to open flat.