The Indian market is set for a positive start on Thursday as around 7:25 am, SGX Nifty, an early indicator of the Nifty 50's trend in India, was up 0.25 percent at 10,814.50, indicating a positive opening for the market.
The Reserve Bank of India (RBI) constituting an expert committee to review its economic capital framework is also likely to help the market.
In addition, the market is also likely to be supported by the surprise surge of the Dow Jones Industrial Average, by 1000 points, in the Wall Street on Wednesday.
Here's what you need to know before the market opens: Oil: US oil prices on Thursday extended their sharp climb from the session before amid rising stock markets, but worries over a glut in crude supply and concerns over a faltering global economy kept a lid on gains. US West Texas Intermediate (WTI) crude futures, were up 26 cents, or 0.56 percent, at $46.48 per barrel at 0032 GMT. They jumped 8.7 percent to $46.22 per barrel in the previous session. Brent crude oil futures had yet to trade. They rose 8 percent to $54.47 a barrel the day before. Wall Street: The Dow Jones Industrial Average surged more than 1,000 points for the first time on Wednesday, leading a broad Wall Street rebound after a report that holiday sales were the strongest in years helped mollify concerns about the health of the economy. Following Wall Street’s worst-ever Christmas Eve drop in the previous session, the advance was also fuelled by investors’ reversing bets against a wide range of stocks. By the close, the Dow, S&P 500 and Nasdaq had notched their largest daily percentage gains in nearly a decade. Gold: Gold prices inched higher on Thursday amid concerns about global economic growth and a partial US government shutdown, although a rebound in investor risk-appetite in the previous session limited gains. Rupee: The rupee closed at 70.07 against the US dollar on Wednesday. Market close: The Sensex and the Nifty ended with gains of more than half a percent after opening in the red and largely trading lower on Wednesday. The Sensex gained nearly 180 points, or 0.51 percent, to settle at 35,650, while the Nifty was up by 66 points, or 0.62 percent, at 10,730. The MidCap index ended in the red although the index recovered around 350 points from the day's lows, while Bank Nifty surged over a percent. IT heavyweight stocks TCS and Infosys dragged indexes, while HDFC twins supported. Bank strike: Banking operations were impacted due to a day-long nationwide strike called by all unions to protest the proposed amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda. However, banking operations would be restored from Thursday onwards. Some private sector banks including ICICI Bank, HDFC Bank and Axis Bank were functioning on Wednesday, while others such as Federal Bank, South Indian Bank and Karur Vysya Bank were closed. FDI policy: The government has tightened rules for ecommerce companies such as Flipkart and Amazon, barring them from selling products of businesses in which they have a stake and laying down new conditions for sale of goods on their platforms. RBI ECF: The Reserve Bank of India on Wednesday constituted an expert committee to review the extant economic capital framework of the central bank. The committee will be headed by Bimal Jalan, former RBI governor, while Rakesh Mohan, former deputy governor and former DEA (Department of Economic Affairs) secretary, is the vice chairman of the committee. US-China trade: A US trade team will travel to Beijing the week of Jan. 7 to hold talks with Chinese officials, Bloomberg reported on Wednesday, citing two people familiar with the matter. The delegation will be led by Deputy US Trade Representative Jeffrey Gerrish and will include David Malpass, Treasury under secretary for international affairs, Bloomberg said. FII and DII data: Foreign Institutional Investors (FIIs) bought shares of Rs 80.28 crore while Domestic Institutional Investors (DIIs) sold Rs 137.63 crore shares in the market on December 26, as per the data on NSE. (With inputs from agencies)