Market May Open Marginally Lower Ahead Of Fed Meet

The Indian equity market rose on Monday after touching a more than three-month low earlier in the session as buying at lower levels supported market ahead of the US Federal Reserve meeting later this week. The Sensex was up 105.92 points or 0.4% at 25150.35 and the Nifty was up 39.60 points or 0.5% at 7650.05. The broader indices benchmarks with midcap and small- cap rose by 0.47% and 0.87%, respectively.

Investors were also somewhat comforted after data released late on Friday showed industrial output grew a much stronger-than-expected 9.8 per cent in October from a year earlier, its fastest pace in five years. Meanwhile, the wholesale price index-based inflation rose to (-) 1.99% in November from (-) 3.81% in October. However, wholesale food price inflation in November doubled to 5.20 per cent year-on-year as compared to October on account of sharp rise in prices of pulses, onions and vegetables.

U.S. stocks ended Monday’s volatile session with modest gains, lifted by a rebound in crude-oil prices. Investors also awaited the Federal Reserve's rates decision due this week. The Dow Jones Industrial Average rose 103.29 points, or 0.6%, to 17368.50. The S&P 500 added 9.57, or 0.5%, to 2021.94, and the Nasdaq Composite rose 18.76, or 0.4%, to 4952.23.

U.S. oil prices briefly fell below USD 35 a barrel before bouncing back to settle 1.9% higher at USD 36.31, near seven-year lows. Junk bonds continued to sell off sharply. Brent futures were down 0.45%, at USD 37.76 a barrel.

European stocks finished sharply lower Monday, led in part by a renewed slide in energy shares as oil prices gyrated. The Stoxx Europe 600 fell 1.8% to end at 349.54, closing at its lowest level since early October. Germany’s DAX 30 drove down 1.9% to end at 10,139.34, and France’s CAC 40 shed 1.7% to finish at 4,473.07, after earlier posting a gain of more than 1%. The U.K.’s FTSE 100 finished down 1.3% at 5,874.06, suffering its lowest close in three years.

Asian shares open mixed in early trade on Tuesday, before a widely anticipated U.S. interest rate increase by the Federal Reserve later this week. The Nikkei 225 index falling back into negative territory, down 138 points, or 0.73%, at 18,745 while South Korea's Kospi index marginally higher, up 4.5 points, or 0.22% percent, at 1931. The Australian market was also in positive territory in early trading on Tuesday. The ASX 200 traded up 10 points, or 0.22%, at 4,939.

A SGX Nifty 50 Index future for December delivery was down 18 points at 7,647. Indian market may open marginally lower ahead of Fed meet.