Market Likely To Open Flat To Positive

Indian equities market edged up for the fifth consecutive session on Tuesday on sustained foreign fund inflows amid prospects of a delay in the US Fed rate hike. The Sensex rose 0.55%, or 147.33 points, to 26,932.88 after regaining its crucial level of 27,000 in the early trade, while the Nifty advanced 0.41%, or 33.60 points, to 8,152.90. The Sensex gained 5% and the Nifty rallied 4.6% in five sessions on buying across sectors. The broader markets also closed in green in line with broad trend, the BSE Midcap and Smallcap indices rising 0.3% and 0.7%, respectively.

U.S. stocks market multiday rally was fizzling Tuesday on sour economic forecasts and a widening U.S. trade deficit, although the Dow industrials were buoyed as shares of DuPont Co. jumped. The S&P 500 closed 7.13 points, or 0.4%, lower at 1,979.92, the Dow Jones Industrial Average eked out a small gain, adding 13.76 points, or less than 0.1%, to 16,790.19. The Nasdaq Composite ended the day down 32.90 points, or 0.7%, at 4,748.36, weighed down by sinking biotech stocks.

Brent crude rose USD 2.67 to settle at USD 51.92 a barrel and West Texas Intermediate settled USD 2.27 higher at USD 48.53. Steeper U.S. production declines over the near term have created a bid for oil prices. Whereas non-OPEC producer Russia and key OPEC member Saudi Arabia discussed the oil market last week also helped boost oil prices.

European shares ended a choppy session firmly higher on Tuesday, as disappointing data fueled hopes of loose monetary policy for longer and higher oil prices propped up the region’s energy companies. The Stoxx Europe 600 index rose 0.6% to close at 360.41, for a third straight session of gains. Germany’s DAX 30 index rose 0.9% to 9,902.83, while France’s CAC 40 index gained 1% to 4,660.64. The U.K.’s FTSE 100 index advanced 0.4% to 6,326.16.

Shares in Asia were mixed early Wednesday after a mixed lead from US stock market overnight, but energy shares were a bright spot after oil prices advanced. Japanese markets were tentative ahead of a crucial Bank of Japan policy meeting. Markets in China remain closed until Wednesday for National Day holidays. Japan’s NIKKEI 225 index shed 0.16% in early trade after ending Tuesday at its highest level since September 17. Australia’s S&P/ASX 200 Index rose 0.24% while New Zealand’s NZX 50 Index fall 0.07%. South Korea’s Kospi index rose 0.48%.

A SGX CNX Nifty Index future for October delivery was up 5 points at 8,170. Indian market is likely to open flat to positive.