Sensex, Nifty Set To Extend Gains For Third Day

(RTTNews) - Indian shares look set to open higher on Thursday, with positive global cues and resumption of buying by foreign funds likely to support underlying sentiment heading into the Christmas break. Provisional data released by BSE showed that foreign portfolio investors bought shares worth a net Rs. 385.82 crore in the cash segment on Wednesday.

The benchmark indexes BSE Sensex and Nifty climbed more than 1 percent each to hit three-week highs yesterday amid positive global cues, a firmer rupee, encouraging current account data and optimism about the progressive nature of the new bankruptcy code.

The Indian rupee closed up 12 paise at 66.21 per dollar, continuing its upward march for the seventh day after data showed India's current account deficit narrowed in the second quarter from a year earlier.

Asian shares were mostly higher, helped by gains on Wall Street overnight and a recovery in oil prices. Gold edged higher after a two-day slide while the dollar index held steady.

Japan's Nikkei was up 0.4 percent as trading resumed following a public holiday on Wednesday for the Emperor's birthday. Elsewhere, Australia's All Ordinaries was rallying 1.2 percent, Hong Kong's Hang Seng was rising 0.6 percent and South Korea's Kospi was moving up 0.3 percent.

Australia, Hong Kong and Singapore will have a shortened session and close early on Christmas Eve today.

U.S. stocks rose for the third straight session overnight as oil prices rallied to a two-week high on data showing an unexpectedly large drop in U.S. crude inventories.

Nike's earnings topped estimates and a slew of data on consumer spending, personal income, new home sales and consumer sentiment painted a positive picture of the economy, buoying investor sentiment. The Dow climbed 1.1 percent, the tech-heavy Nasdaq rose 0.9 percent and the S&P 500 advanced 1.2 percent.

The European markets also ended Wednesday's session with strong gains, led by energy and material stocks after OPEC said it expects oil prices to recover to $70 a barrel by 2020. The German DAX and France's CAC 40 both jumped around 2.3 percent, while the U.K.'s FTSE 100 soared 2.6 percent.