Indian equity indices commenced the week on a sluggish note as the benchmarks showcased an unenthusiastic performance on Tuesday and settled on a flat note. Sentiments remained dismal as worries over global economic growth prospects prompted marketmen to take profits off the table ahead of the European Central Bank's policy review on Thursday and US Federal Reserve's policy meeting next week. On the domestic front, sentiments were undermined with the MNI Consumer Sentiment index falling to 108.9 in February from 109.8 in January, indicating sluggish sentiment among end consumer as they grapple with volatile markets and deteriorating personal finances. Besides, depreciation in Indian rupee too dampened sentiments. Breaking its sixth-day rising streak, Indian rupee weakened by 31 paise to quote at 67.39 against the dollar at the time of equity markets closing on fresh demand for the American currency from importers and banks. Sentiments remained subdued with assistant Secretary for Global Markets in the US Department of Commerce, Arun Kumar said that a BJP has not moved as fast as expected to implement long-awaited reforms like the GST, Bankruptcy Law and Land Acquisition Bill. He asked American businesses to be patient since reforms cannot be implemented overnight. However, investor Sentiment got some support with international rating agency Fitch maintaining India's growth forecast at 7.5 percent for the financial year 2015-16 and projecting the GDP growth of 7.7 per cent in the FY2017, which is 0.3 per cent lower than its December forecast of 8 per cent, but much in line with the government's projection. On the global front, Asian markets ended mostly in red, while European counters also made an awful start. Earlier on Dalal Street, after making a flat but positive start, Indian benchmarks indices showed some strength in early trades, but the sentiments turned pessimistic in late morning trades as investors booked profits in financials after sharp gains in the previous week while technology shares weakened tracking losses in their counterparts on the Nasdaq. Finally, the BSE Sensex gained 12.75 points or 0.05% to 24659.23, while the CNX Nifty declined 0.05 points to 7,485.30.

The US markets closed lower on Tuesday, snapping their five-day winning streak as supply woes weighed on oil prices and worries about a prolonged slowdown in China resurfaced. Crude-oil prices tumbled as traders bet that weekly data will reveal a fourth straight climb in US crude inventories and as the market resumed its doubts over the potential for an output freeze. On the economy front, small-business owners turned less confident about their economic prospects last month, with lackluster sales crimping margins and ongoing uncertainty over the economic outlook and political landscape pinching spending plans. The National Federation of Independent Business' small-business optimism index, based on a survey sent to about 5,000 owners, slipped 1 point to 92.9, the lowest level in about two years. In 2015, the gauge averaged 96.1. Six of the index's 10 components fell last month while the rest were unchanged from January. The Dow Jones Industrial Average lost 109.85 points or 0.64 percent to 16,964.10, the Nasdaq was down 59.42 points or 1.26 percent to 4,648.83 while, the S&P 500 dropped 22.50 points or 1.12 percent to 1,979.26.

Crude oil futures suffered sharp decline and retreated from near two-month highs on Tuesday, after Kuwait oil minister Anas al-Saleh declared that his nation would be unwilling to take part in an OPEC-Non OPEC accord, unless the agreement involved every member of the world's largest oil cartel, including Iran. Benchmark crude oil futures for April delivery plunged by $1.38 or 3.64 percent to $36.52 a barrel after trading in a range of $36.47 and $38.38 a barrel on the New York Mercantile Exchange. In London, Brent crude for May delivery closed at $39.63, down $1.21 or 2.96 percent on the ICE.

Snapping its six-days gaining streak, Indian rupee concluded weak against dollar on Tuesday on fresh demand for American currency from banks and importers, tracking losses in Asian currencies market. Besides, a firm dollar against some global currencies overseas also weighed on the rupee. Nevertheless, choppy trade in the local equity which somehow managed a positive close capped some losses. The domestic currency was weak from the start and also failed to get solace with the international rating agency Fitch  forecast maintaining India's growth forecast at 7.5 percent for the financial year 2015-16 and projecting the GDP growth of 7.7 per cent in the FY2017, which is 0.3 per cent lower than its December forecast of 8 per cent. On the global front, euro moved up against the dollar on Tuesday as appetite for riskier assets and currencies waned following the weak Chinese data. Finally, the rupee ended at 67.34, 25 paise weaker from its previous close of 67.09 on Friday.

The FIIs as per Tuesday's data were net buyers in equity and in debt segments both. In equity segment, the gross buying was of Rs 4242.96 crore against gross selling of Rs 3360.96 crore, while in the debt segment, the gross purchase was of Rs 917.29 crore with gross sales of Rs 845.11 crore.         

The US markets snapped their gaining streak, with the major averages racing lower along with crude oil prices in the last session. The Asian markets have extended their decline on concern over the state of the global economy. Japanese market was down in the wake of new data reinforcing its economic woes. The Indian markets consolidated in the last session, though the major averages managed a flat closing but the mood remained cautious and the trade choppy for the day. Today, the start is likely to remain cautious and a mildly soft start can be seen on the sluggish global cues, and the Nifty can once again retest 7450 mark. However, there will be some support too, to the markets with Moody's Investors Service stating that though the prolonged decline in oil prices and weaker expansion in Chinese economy have dimmed growth prospects of several economies, but it does not signal a threat of global recession. It stated we believe that the positive impact of lower commodity prices on global growth helps mitigate the negative effect from the financial market turbulence. Meanwhile, putting off some pressure from the RBI, Chief economic adviser Arvind Subramanian said that we should not peg all the hopes on a rate cut by the Reserve Bank of India to cure the economy from all that plagues it.  There will be some buzz in the banking stocks, as the government has put its weight behind the ailing banks in their pursuit to recover as much money as possible from the corporate houses, which have been unable to meet their payment obligations. Finance minister Arun Jaitley has informed that Public sector banks' (PSBs) bad loans increased by Rs 94,666 crore in first nine months of the current financial year.

Support and Resistance: NSE Nifty and BSE Sensex

Nifty Top volumes

• Tata Motors has entered into an agreement with Bharat Forge and US-based General Dynamics Land Systems for the Indian Ministry of Defence future infantry combat vehicle programme.
• NTPC has inked pact with IIT, Delhi for research and development in areas of mutual interest such as simulation and modeling, heat transfer and thermal process, artificial intelligence etc.
• In a bid to encourage women entrepreneurs and promote greater usage of banking services by women, State Bank of India has decided to set up one all-woman branch in every district.
• Bajaj Auto is looking to sell around 50,000 units of 150CC ‘V' bikes in the country and will decide on extending the brand to other segments after 12-18 months.
• Maruti Suzuki India has launched its first compact urban SUV, Vitara Brezza, at a striking price point.