Markets likely to open flat on mixed global cues

Today, the start for the Indian markets is likely to be flat on mixed global cues. The SGX Nifty is trading almost with a loss of 7 points at 10,249.50, indicating a flat start at the opening bell.  

Yesterday, the post-market macroeconomic data released indicated that the CPI inflation for the month of November was sharply higher, touching a 15-month high at 4.88% with inflation well above the RBI comfort zone of 4%. Due to this, the rate cuts may be off for now. The IIP number for October came in at 2.2% 

Asian markets are trading lacklustre in the opening trade on Wednesday.  Hong Kong’s Hang Seng headed north and gained 109 points, whereas Japan’s Nikkei 225 has slid 46 points and China’s Shanghai Composite has lost 2 points. 

Back home, snapping a three-day winning streak, key benchmark indices drifted lower to end the day near day’s low. Selling pressure was witnessed in broader indices with the Nifty Mid-cap and Small-Cap edging lower by 0.86% and 0.91%, respectively. Sector-wise, all the sectors ended the day in the red, with the main culprit being Nifty Realty followed by FMCG and private banks. At the closing bell, BSE Sensex slipped 228 points lower to end at 33,228 and Nifty ended lower by 82 points at 10,240.  

On Tuesday, the Dow and the S&P 500 closed at record levels as the Federal Reserve kicks off its two-day meeting, while the Nasdaq bucked the trend to head South. The Dow Jones Industrial Average climbed 119 points to 24,504, the S&P 500 rose 4 points to 2,664, while the Nasdaq Composite shed 13 points to 6,862.  

After starting the trade in the negative terrain on Tuesday, the European markets recovered from lower levels to end with modest gains. Market participants are in a cautious mood ahead of the upcoming spell of central bank activity. The DAX of Germany rose 0.46%, CAC 40 of France gained 0.75% and the FTSE 100 of the U.K. climbed 0.63%.