 "Pre-market: Positive opening likely, world markets strong")
U.S. stocks rebounded from their worst decline since November on Tuesday after Federal Reserve Chairman Ben Bernanke defended the Fed's bond-buying stimulus and sales of new homes hit a 4 1/2-year high.
Bernanke, in testimony on Tuesday before the Senate Banking Committee, quieted rumblings that the central bank may pull back from its stimulative policy measures, which were sparked by the release of the Fed minutes last week.
The Dow Jones industrial average gained 0.84 percent, to 13,900 at the close. The Standard & Poor's 500 Index rose 0.61 percent, to 1,497. The Nasdaq Composite Index advanced or 0.43 percent, to close at 3,130.
Asian shares rebounded on Wednesday, tracking U.S. stocks higher as the Federal Reserve Bank reassured markets of its commitment to strong monetary stimulus, but investors remained wary of political gridlock in Italy reigniting the euro zone financial crisis.
The MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.3 percent after shedding 1.2 percent to a seven-week low the previous session.
Japan's Nikkei stock average opened up 0.2 percent, after tumbling 2.3 percent the day before, moving further away from Monday's 53-month closing high.
STOCKS TO WATCH
State oil firms, Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp may see some price action on account of increased freight charges for transporting diesel, cooking gas and kerosene by 5.8 percent and them not immediately pass on the hike to consumers.
NTPC may see a green tick as the company Board gave investment approvals to expansion projects involving Rs 12,953.12 crore.
SpiceJet is likely to see some gains as the Spice will compete with other aviation players to take up domestic slots which KFA has vacated at various airports.
Aditya Birla Group flagship firm Hindalco Industries may see a red tick as the company announced a lock-out at its Silvassa plant following continuation of workers' strike.