Indian share market is likely to open flat amid mixed cues from the global markets. Nonetheless, the market may show volatility on account of alternate bouts of buying and profit taking. According to provisional data, foreign funds bought shares worth Rs.285 crore on a net basis Monday, while domestic institutional investors were net sellers for Rs.46 crore.
Overnight, the US stock markets closed little changed as investors awaited progress on the U.S. bank’s rescue plan after U.S. Treasury Secretary Timothy Geithner postponed the decision by one day until Tuesday. Additionally, traders were anxious as the U.S. economic stimulus package faced hurdles in the Senate. The Nasdaq Composite index slipped 0.01% and the Dow Jones Industrial Average shed 0.12%, while the S&P 500 index ended up 0.15%.

The Indian ADRs also closed mixed. MTNL, Wipro and Satyam Computers closed lower, while the others finished on a positive note.

The rupee settled at Rs.48.57/58 against the dollar on Monday, 0.2% stronger than its previous close, helped by a rally in the stock market, dollar selling by banks and hopes about further capital inflows from foreign funds after SEBI data showed that FII’s have been buying shares over the past few sessions.