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After a rallying over 1% yesterday markets opened flat today. Exit polls conducted in the assembly elections indicated that Bhartiya Janata Party (BJP) could win 3 out of 5 states which are set to declare poll results on December 8.
The 30-share BSE Sensex opened at 20,950 down almost 8 points from its yesterday's close while the 50-share Nifty index of the National Stock Exchange (NSE) opened at 6242 up 2 points.
It was an ominous start for the Winter session of Parliament which began with an adjournment. The Cabinet cleared the controversial proposal to create the state of Telangana.
The US government revised its initial estimates on third-quarter economic growth to 3.6% from earlier 2.8%. This has renewed fears that the Fed may decide to taper its stimulus. Investors are eyeing November's jobs report from US on Friday now. European markets fell after the European Central Bank and the Bank of England both kept interest rates steady.
Federal Reserve Bank of Atlanta President Dennis Lockhart, a backer of record stimulus, said any decision to taper bond purchases should be accompanied by a limit on the size of the programme or a timetable for ending it.
"If and when the Federal Open Market Committee (FOMC) arrives at a decision to wind down asset purchases, it's my view that it will be helpful to the transition process to provide as much certainty as possible about how this will be done," said Lockhart in a speech in Fort Lauderdale, Florida. He doesn't vote on policy this year.
The FOMC will consider scaling back $85 billion in monthly bond buying in coming months based on expected gains in the labour market, according to minutes from the committee's October meeting. The panel is scheduled to meet December 17-18.
Asian markets steadied on Friday as Japanese shares recouped early losses, though investors were pensive ahead of jobs data that could make or break the case for an imminent scaling back in US stimulus. Defying a soft finish on Wall Street, Tokyo's Nikkei edged up 0.2% in morning trading, recouping a little of the 3.6% loss suffered in the previous two sessions.
Shares across the region seemed to take some heart and MSCI's broadest index of Asia-Pacific shares outside Japan turned flat after an early dip.
Overnight, U.S. stocks fell on Thursday, with the Dow and S&P 500 dropping for a fifth straight session after a round of mixed economic data left traders guessing as to when the Federal Reserve would begin to slow its stimulus program.
The Dow and the S&P 500 are in their worst stretch since September. However, the moves have been slight, with the S&P 500 down about 1.2% over the period.
The Dow Jones industrial average slipped 0.43%, to end at 15,821. The Standard & Poor's 500 Index fell 0.43%, to finish at 1,785. The Nasdaq Composite Index dropped 0.12%, to close at 4,033.
