Indian Market Likely To Open On Flat Note

A benchmark index of Indian equities markets hit fresh record highs on start of the week after the prospect of further policy stimulus in China and Europe whetted risk appetite globally, while expectations of more reforms during the ongoing winter session of parliament also helped. The Sensex ended up 164.91 points i.e. 0.6% at 28499.54 after hitting intra-day record high of 28542. The Nifty closed up 52.80 points i.e. 0.6% at 8530.15, after touching intra-day record high of 8534.65.

The small-cap and mid-cap spaces, however, didn’t share the same enthusiasm, with the BSE Mid-Cap index rose 7.18 points i.e. 0.07% to settle at 10,202.97 and Small-Cap index lost 7.01 points i.e. 0.06% to settle at 11,318.83. Metal stocks such as Hindalco and Tata Steel were among the major gainers, buoyed by a rate cut in China which is one of the biggest consumers of base metals.

As per Reuters, U.S. listed India ETFs have added about USD 2 billion in net new assets so far this year, outshining other emerging market funds. That brings the total assets of the 10 India ETFs tracked by Morningstar to USD 6.3 billion, up roughly 47% since January.

Globally, The U.S. stock market closed at record levels on Monday as investors continued to cheer easy money policies globally. Dow Jones and S&P 500 indexes ended at record high closings. The Dow Jones industrial average was up 0.04% at 17,817.9, the S&P 500 rose 0.29% to 2,069.41, and the Nasdaq Composite added 0.89% to 4,754.89. It’s a shortened holiday week for the US market, with the market closed on Thursday and only open for a half day on Friday.

Brent and WTI crude oil prices declined for the first time in three days ahead of an OPEC meeting on Thursday that so far has been marked by uncertainty over whether the group would agree to a meaningful cut in output to support prices. Brent crude was last down 84 cents at USD 79.52 a barrel. U.S. crude was last down 77 cents to USD 75.74.

European markets also extended its rally on Monday, adding to Friday's strong gains, as expectations of more monetary stimulus in the bloc and some positive German economic data boosted sentiment. However, FTSE 100 Index struggled for direction, falling 21 points lower to 6729.8, despite positive sentiment in European markets. Germany's DAX index rose 0.5% to 9785.54 and France's CAC 40 gained 0.5% to 4368.44. The euro zone’s blue-chip Euro STOXX 50 index was up 0.7%.

Tokyo stocks opened in green and now currently the Nikkei 225 index trading at 0.46% higher on a post holiday after further record setting gains on Wall Street and the dollar's rise against the yen. Hong Kong’s Hang Seng Index opens in red and now its recover, trading at flat. The Shanghai Composite Index climbed 0.44% to 2,544.

The SGX Nifty is open with marginally in positive with up by 0.06%. Investors' focus will remain on Q2 September 2014 GDP data set to be announced by the government at 5.00 pm on Friday, 28 November 2014. GDP grew 5.7% in Q1 June 2014 over the same quarter of the previous year. RBI also will announce its policy on 2 December. Today we expect Indian equities open flat cues and going forward may see volatility ahead of F&O expiry.