Wednesday, the Indian market may open flat with a positive bias amid mixed global cues. While positive sentiment on account of net buying by foreign funds may improve sentiment, traders may express caution ahead of the expiry of March series derivatives contract on Thursday. On a net basis, foreign funds bought shares worth Rs.502 crore on Tuesday, while domestic institutional investors sold shares worth Rs.192 crore.

Currently, markets across the Asia-Pacific region are trading mixed. China's Shanghai Composite index is up 0.32%, South Korea's KOSPI is up 0.13% and Australia's All Ordinaries index is rising 1.12%, but Hong Kong's Hang Seng index is down 0.50% and Japan's Nikkei 225 index is losing 0.33%

After failing to sustain an afternoon recovery attempt, stocks on Wall Street moved back to the downside going into the close of trading on Tuesday due to profit taking. The major averages ended the day firmly in negative territory, although they ended the session just off their worst levels. The Dow Jones Industrial Average slipped 1.49%, the Nasdaq Composite fell 2.52% and the S&P 500 index moved down 2.03%.

The Indian ADRs also ended in the red. Among the major decliners, HDFC Bank tumbled 5.85%, MTNL fell 5.2%, Sterlite Industries plunged 7.61%, Infosys declined 4.92% and ICICI Bank ended down 3.09%.

Crude oil showed modest gains ahead of the release of US oil inventory data on Tuesday on optimism that the US government's plan to unburden banks of soured assets could help shore up the ailing economy. After closing at $53.98 a barrel in New York trading overnight, crude oil futures for May delivery are trading at $53.31 a barrel, down 1.24% in Asian trading.

The rupee settled lower at Rs.50.70/71, down 25 paise against the dollar on Tuesday amid weakness in the stock market, a firm dollar overseas and month-end demand for dollars from oil refiners.

On Tuesday, the Indian market rose to a one-month high on firm global cues in early trading but could not sustain the initial gains due to profit taking ahead of the expiry of March series derivatives contract on Thursday. The BSE Sensex, which was up nearly 275 points in intra-day trade, closed at 9,471, up a mere 47 points over the previous close. On the other hand, the S&P CNX Nifty ended flat at 2,939.

HDFC could be in focus after it reduced its retail prime lending rate by 50 basis points to 14% effective Wednesday.

Glenmark Pharmaceuticals may see some activity after the company disclosed that HSBC Global Asset Management (Singapore) has hiked its stake to 5.01 per cent in the company.

Vishal Information Technologies may move on reports that it may raise around $40 million through global depository receipts.

Crompton Greaves may be in focus on news that it will acquire a 41 per cent stake in Avantha Power & Infrastructure for Rs.227 crore. Additionally, the company said it would buy back shares to the extent of Rs.224 crore, at a price not exceeding Rs.170 per share.

Bajaj Auto could see some activity following reports that it is postponing the launch of its ultra light commercial vehicle.

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