Expect Flat Opening

Indian equities markets ended flat on Thursday due to holiday on Friday amid absence of any domestic cues, but the market gained for second straight week on healthy macro-data as well as value buying in blue chips stocks by foreign institutional investors (FIIs). The Sensex gained 319.49 points or 1.25% and the Nifty went up by 99.10 points or 1.27% for the week ended December 24. On the downside, the winter session of Parliament ended without passage of GST and bankruptcy bills. The BSE Mid-cap index rising 98.92 points or 0.91% to settle at 11,018.17, while the Small-cap index rising 198.73 points or 1.72% to settle at 11,730.59.

However, during the last week Reserve Bank of India (RBI) Governor Raghuram Rajan raised concerns after loan growth at Indian banks slowed in the six months period between March and September, 2015 while bad loans rose, signalling increased risks to lenders.

Global front, U.S. stocks closed slightly lower on Thursday but posted their biggest weekly gains in more than a month in which commodities and beaten-down sectors of the market led. The S&P 500 ended 3.32 points or 0.2%, lower at 2,060.97 and booked a 2.8% gain over the week. The Dow Jones Industrial Average lost 50.44 points, or 0.3%, to 17,552.17 and finished the week 2.5% higher. Meanwhile, the Nasdaq Composite ended the day up 2 points or less than 0.1%, at 5,048.49 and recorded a 2.6% gain over the week.

European stocks mostly edged lower Thursday, but still higher for the holiday shortened week. The Stoxx Europe 600 ended slightly lower amid light holiday trading, and rose 1.4% for the week. On Thursday, France's CAC 40 closed 0.2% lower at 4,663.18, while the U.K.'s FTSE 100 gained 0.2% to end at 6,254.64 while Germany's stock exchange was closed for Christmas Eve. For the week, France's CAC 40 gained 0.8%, the FTSE 100 surged 3.3% and the DAX advanced 1.1%.

U.S. crude oil rose 5.7% this week to USD 38.10, snapping a three-week losing streak, but prices are still down more than 28% this year on concerns over a global supply glut. While Brent crude, the global benchmark rose 2.7% for the week.

Asian equities traded mixed on the first day of the week after a rebound in crude oil prices. Markets in Australia, New Zealand and the U.K. remain closed today. The NIKKEI 225 index was up 39 points, or 0.21%, at 18,808 while South Korea’s Kospi index slid 0.8% to 1,972.37. Chinese markets traded at flat, with the Shanghai Composite index was marginally down 0.04% at 3,626.58.

A SGX Nifty 50 index future for December Series traded down 1 points at 7,889. Indian market may open flat and going forward may expect volatility due to ahead of F&O expiry.