Mumbai: Indian shares should rise for a third day on Thursday, buoyed by strong Asian markets after positive US data fuelled hopes the global economy was on the mend.
Data showed that US factory activity in March fell at a slower rate than the month before, while pending home sales rose more than expected in February.
A Reuters technical analysis shows Indian shares are highly correlated with Wall Street, and they are unlikely to turn down on Thursday after US stocks rallied overnight.
But investors may pause ahead of a three-day weekend after the main index jumped almost a fifth in just over three weeks.
Leading car maker Maruti Suzuki will be watched after media reports said it plans to stop selling its best-selling Maruti 800 and Omni brands in 11 key cities from 2010 as these models were not Euro-IV compliant.
Tata Motors will be in focus after India’s largest vehicle maker said its domestic sales fell 13% in March from a year earlier, but rose 24% from February as stimulus measures kicked in.
Cement makers may also be on the radar after the Economic Times newspaper said several firms across the country had raised prices by Rs3-7 per 50-kilogram bag effective 1 April.
Asian markets rose on Thursday, tracking the overnight rally on Wall Street. By 0353 GMT, Japan’s Nikkei was up 3.7%, while MSCI’s measure of other Asian markets was up 3.8%.
Nifty futures traded in Singapore were up 2.6%, pointing to a higher opening in India.
On Wednesday, the 30-share BSE index closed up 2% at 9,901.99, after falling as much as 1.7% at one stage.