Market Likely To Open Flat
Indian equities indices fall steeply in late trade and fell nearly 1% on Wednesday due to profit-booking in healthcare, tech and auto stocks as investors trimmed their bets ahead of the start of earnings season. TCS and RIL announce their earnings on 16 and 17 April, respectively. The Sensex closed lower by 0.84%, or 244.75 points, at 28,799.69 points, while the Nifty was down 0.95%, or 83.80 points, to 8,750.20 points. The BSE mid-cap index rose as much as 0.6% to touch a record high of 11,193.73 points earlier in the day, but later pared gains and closed 0.5% lower at 11,070.76 points, as the weakness in broader market dragged the index lower.
The Wholesale Prices Index (WPI) continues to be negative for the fifth straight month. In March, partly due to the beneficial effects of the base effect and weakening food inflation, the WPI fell to a record low of (-) 2.33% which is lower than February’s -2.06% on account of cheaper food and fuel products as well as manufactured items. There is a good chance that this trend may continue for a few more months.
Globally, Rising corporate profits and a jump in oil prices helped push the US stock market to a modest gain on Wednesday. The price of oil soared to its highest price this year, driving up energy stocks. Small-cap stocks led the rally, with the Russell 2000 closing at a fresh record. The S&P 500 SPX closed 10.78 points, or 0.5%, higher at 2,106.62. The Dow Jones Industrial Average DJIA added 75.71 points, or 0.4%, to 18,112.41. The Nasdaq Composite COMP ended the session up 33.73 points, or 0.7%, to 5,011.02.
WTI crude oil jumped USD 3.10 to settle at USD 56.39, hitting its highest price this year, after the Energy Department said that storage of crude rose by the smallest amount in three months. Brent crude rose USD 1.89 to close at USD 60.32 in London. Increased fighting in Yemen also bumped up prices of both benchmarks.
European stocks rallied on Wednesday, with one regional benchmark hitting a level not seen since late 2000, after the European Central Bank said it remained committed to its full asset-buying programme to revive the euro zone economy. S&P's on Wednesday cut Greece's credit rating from "CCC+" from "B-" with a negative outlook, saying it expected Greece's debt to be "unsustainable." Germany's DAX finished flat while France's CAC-40 gained 0.7%. Britain's FTSE 100 index of leading shares added 0.3%.
Asian equities outside Japan rose early Thursday, drawing support from a higher finish on Wall Street overnight. New Zealand’s NZX 50 Index climbed 0.2%, and Australia’s S&P/ASX 200 Index rose 0.5%. South Korea’s Kospi index gained 0.5%. Japan’s Topix index slid 0.22%. China's Shanghai Composite index notched up 1.2%, reversing a lower open, while Hong Kong's Hang Seng index hovered in neutral territory.
SGX Nifty is trading at flat. Indian market is likely to open flat. For the future course of action, traders will be eye on WPI to be released on April 15 at 12 p.m. Market expected to remain in negative around 2% in March 2015. All are eye on TCS result which will report on Today and investors to focus on management guidance rather than the performance of the company in the January-March quarter and which will applicable to other big companies also. IndusInd Bank, Mindtree and Gruh Finance would be reporting fourth quarter earnings today.