Local stocks are poised for strong opening. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 109 points at the opening bell.
The Ministry of Home Affairs (MHA), on September 30, announced the Unlock 5.0 guidelines, further relaxing curbs on activities outside of containment zones. Under this set of guidelines, cinemas, theatres, multiplexes have been permitted to open with 50% seating from October 15.
The output for India's eight core industries contracted for the sixth straight month, dropping 8.5% in August 2020, government data released on Wednesday showed.
Overseas, Asian equities are trading higher tracking overnight gains in U.S. stocks. Markets in China, Hong Kong, South Korea and Taiwan are closed on Thursday for holidays. Japan's Tokyo Stock Exchange suspended trading on Thursday due to a technical issue.
On the economic data front, the headline large manufacturers index in the Bank of Japan's quarterly tankan business sentiment survey came in at minus 27. Still, that was better than the minus 34 reading in June.
In US, stocks climbed in volatile trading on Wednesday amid rising hopes for further coronavirus stimulus.
Stocks cut gains in the final hour of trading after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to strike a coronavirus aid deal. The pair will continue talks as they try to craft a fifth package that could pass both chambers of Congress. The market soared earlier in the session after Mnuchin said lawmakers were giving the bill “a serious try.”
Meanwhile, Moderna's experimental Covid-19 vaccine appears safe and shows signs of working in older adults, according to study results published in the New England Journal of Medicine. However, as per reports Moderna's vaccine won't be ready before the November election.
Sentiment was helped by better-than-expected economic data. ADP's monthly private-sector jobs count showed growth of 749,000 in September. Meanwhile, pending home sales soared 8.8% in August, marking its highest pace on record, according to the National Association of Realtors survey.
The US economy plunged at a record rate in the spring. The Commerce Department reported Wednesday that the gross domestic product, the economy's total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% drop estimated one month ago.
Back home, key equity indices ended with small gains after a volatile trading session. The barometer index, the S&P BSE Sensex, climbed 94.71 points or 0.25% at 38,067.93. The index fell 145.11 points at the day's low of 37,828.11 in morning trade. It jumped 263.12 points at the day's high of 38,236.34 in mid-afternoon trade.
Foreign portfolio investors (FPIs) sold shares worth Rs 712.48 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 409.47 crore in the Indian equity market on 30 September, provisional data showed.