Market may open slightly higher

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 16 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading mixed on Thursday as investors reacted to the latest announcements from the U.S. Federal Reserve.

In US, Wall Street rose on Wednesday, with the Nasdaq closing at a record high as investors awaited a potential fiscal economic stimulus package and after the Federal Reserve repeated a pledge to keep its benchmark interest rate near zero.

The U.S. central bank also kept benchmark interest rates near zero, as expected, following the conclusion of its two-day meeting. The Fed said it will buy at least $120 billion of bonds each month until substantial further progress has been made toward the Committee's maximum employment and price stability goals, according to its post-meeting statement. Federal Reserve Chairman Jerome Powell also said on Wednesday that stock prices are not necessarily highly priced given how low interest rates are.

Congressional leaders closed in on a $900 billion rescue deal that would include a new round of direct payments to consumers. However, that package excludes a liability shield for businesses and state and local aid, reports indicated.

US retail sales fell sharply in November, according to government data released Wednesday, a further sign of economic trouble as COVID-19 cases climbed and lawmakers remained deadlocked on approving economic stimulus. Sales fell 1.1% compared to October, when sales also dipped, the Commerce Department reported, much sharper than expected.

Domestic markets:

Back home, the domestic equity benchmarks ended the session near the day's high on Wednesday, mirroring positive global shares. The S&P BSE Sensex, jumped 403.29 points or 0.87% at 46,666.46. The Nifty 50 index advanced 114.85 points or 0.85% at 13,682.70.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,981.77 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,718.45 crore in the Indian equity market on 16 December, provisional data showed.

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