Indian shares are set to open higher on Thursday, in tandem with a firm trend across Asia after overnight data showed U.S. housing starts jumped to the highest level in almost four years in June. Strong corporate earnings from U.S. bellwethers and the Federal Reserve's commitment to take new steps to support the economy if necessary also helped to lift sentiment across Asia.
Commodities such as copper and crude are slightly higher, while the dollar is retreating against major global currencies. The rupee is poised for a higher start after closing down 37 paise to settle at 55.48 against the dollar yesterday.
On the earnings front, Dish TV India, Dr Reddy's Laboratories, Hero MotoCorp, Kotak Mahindra Bank, L&T Finance Holdings and Zee News are among the companies that will unveil their quarterly earnings today.
Investors will closely monitor international crude prices after oil prices rose again on Wednesday to hit a seven-week high on Middle East tensions.
Indian shares recouped early losses to end modestly higher on Wednesday on continued hopes that the government will pursue "difficult" economic reforms after the presidential election to boost sagging economic growth and dwindling foreign investment. The benchmark BSE Sensex ended the session up 80 points or 0.47 percent at 17,185, while the broader Nifty index rose by 23 points or 0.45 percent to 5,216.
U.S. stocks posted notable gains overnight, as tech stocks rallied despite disappointing guidance from semiconductor giant Intel. Buying interest was also generated by a report released by the Commerce Department which showed a bigger than expected rebound in housing starts in June.
Building permits data, an indicator of future housing demand, fell by 3.7 percent to an annual rate of 755,000 in June, while the Fed's Beige Book revealed modest expansion in overall economic activity in June and early July. The Dow rose 0.8 percent, the tech-heavy Nasdaq climbed 1.1 percent and the S&P 500 gained 0.7 percent.
by RTT Staff Writer
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