Sensex, Nifty Seen Higher On Global Cues

Indian shares look set to open higher on Thursday, though the impending expiry of derivative contracts might induce some volatility as the day progresses.

As Covid-19 cases continue to surge in the country, the disruption in economic activities will likely result in the country's gross domestic product (GDP) contracting by a whopping 40 percent, SBI Chief Economist Soumya Kanti Ghosh said in a report.

Separately, investment bank Credit Suisse said that Indian banks may need to raise $20 billion in additional capital for increased provisioning over the next 12 months.

On the earnings front, Sun Pharma reported a 37 percent fall in Q4 profit and Dabur reported a 14 percent fall in consolidated net profit for the March quarter, while United Spirits' quarterly consolidated net profit plunged as much as 58 percent from last year.

Benchmark indexes Sensex and the Nifty jumped over 3 percent on Wednesday while the rupee settled 5 paise lower at 75.71 against the U.S. dollar.

Asian markets are trading mostly higher this morning despite renewed concerns about Hong Kong's future.

According to U.S. Secretary of State Mike Pompeo, China had undermined Hong Kong's autonomy so fundamentally that the territory no longer warranted special treatment under U.S. law that helped make it a global financial hub.

President Donald Trump is expected to announce a response to China's policies towards Hong Kong later this week.

The dollar index suffered losses and oil extended overnight losses on concerns about Trump's response to China while gold gained ground on safe-haven demand.

U.S. stocks rose for a third day running on Wednesday amid continued optimism about the reopening of businesses and progress in vaccine development.

The Dow Jones Industrial Average climbed 2.2 percent and the S&P 500 added 1.5 percent to reach their best closing levels since early March, while the tech-heavy Nasdaq Composite rose 0.8 percent to hit its highest closing level in over three months.

European markets advanced on Wednesday as the European Union unveiled a €750 billion stimulus program to help limit the damage inflicted by the coronavirus pandemic.

The pan European Stoxx 600 edged up 0.2 percent. The German DAX and the U.K.'s FTSE 100 both rallied around 1.3 percent, while France's CAC 40 index surged 1.8 percent.