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Global mkts negative; will Nifty follow suit?

Global cues, however, are negative with the US markets ending mostly lower as European Central Bank (ECB) says it will no longer accept Greek bonds as collateral for its liquidity operations.

The Indian equity market is likely to open flat today with a mild positive bias. The SGX Nifty, an indicator of the market opening, was trading at 8761, up 5.50 points.

The market saw a lacklustre session on Wednesday as the Sensex ended below the 29000-mark, weighed down by banks, capital goods and select auto stocks.

The 30-share BSE Sensex declined 117.03 points to 28883.11 and the 50-share NSE Nifty slipped 32.85 points to 8723.70, continuing weakness for the fourth consecutive session while the broader markets closed flat.

Global cues, however, are negative with the US markets ending mostly lower as European Central Bank (ECB) says it will no longer accept Greek bonds as collateral for its liquidity operations.

European shares closed mixed, off session lows on Wednesday, as investors reacted to earnings and hopes that the Greek debt dispute would be resolved.

Asian markets are trading in the red. China will be in focus today as the PBOC reduced the reserve requirements for banks by 50 basis points for the first time in two years.

In other asset classes, crude prices remained a source of market volatility. Nymex crude prices were steady around 48 dollars per barrel after closing nearly 9 percent lower overnight. Brent too traded around USD 54 per barrel.

Meanwhile, the euro declined after the ECB saying it will no longer accept Greek bonds as collateral. From the precious metals space, gold gained after China moved to cut banks’ reserve requirement.

Bank home, in key earnings to watch, Tata Motors will declare its results today. According to a CNBC-TV18 poll, the revenue may come in 3.5 percent higher while profits may remain flat at Rs 4846 crore on a consolidated basis.

Furthermore, India has entered a phase of loose monetary policy and one should expect no rate hikes for the next 3 to 4 years said RBI Governor Raghuram Rajan. Rajan further added that India is in the “outskirts” of the woods but not yet out of the woods.

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