Indian Market Likely To Open Flat To Negative

The market shed all its gains in last hour of trade on Thursday, amid lack of near-term triggers and skepticism over the quarterly earnings. However, the Sensex had surged over 350 points earlier in the session as a dovish Fed stance cooled expectations of an earlier-than-expected US rate hike. The Sensex declined 152.45 points to 28469.67 and the Nifty slipped 51.25 points to 8634.65. The broader markets followed the same trend too; the BSE Midcap and Smallcap indices lost 0.6% each with the market breadth in favour of declines.

Another drop in oil prices helped drive the US stock market drifted lower Thursday, taking a breather a day after a Federal Reserve-inspired rally that sent the S&P 500 to its highest close in two weeks. The S&P's 500 fell 10.23 points, or 0.5%, to 2,089.27. The Dow Jones industrial average lost 117.16 points, or 0.6%, to 17,959.03. The Nasdaq composite rose 9.55 points, or 0.2%, to 4,992.38.

Benchmark U.S. oil sank 70 cents to close at USD 43.96 a barrel in New York, extending a slump that has slashed prices by more than half over the past year. Brent crude fell USD 1.48 to close at USD 54.43 in London. Weak global demand and booming U.S. shale oil production are seen as two key reasons behind the price plunge, as well as OPEC's reluctance to cut its output. OPEC is next due to meet in June, when it will decide on its output policy after deciding to keep its production steady.

Major markets in Europe were mixed. Germany's DAX fell 0.2%, while France's CAC 40 edged up 0.1%. Britain's FTSE 100 rose 0.2%.

Asian stocks were largely lower in Friday's early trade, mirroring Wall Street's finish overnight as the Fed-inspired rally lost steam. Japan's Nikkei shed 0.2% and South Korean and Australian shares posted similar losses. SGX Nifty is trading marginally up by 10 points. Indian market may expect to open in flat to negative.