US Federal Reserve's decision to keep the interest rates steady will be the biggest factor driving markets on Thursday. On Wednesday, the US central bank held rates in the June policy but signaled rate cuts later in the year.
Moreover, markets may further react to the Bank of Japan and the Bank of England's interest rate outcomes due later in the day.
Additionally, minutes of the Reserve Bank of India's (RBI) latest policy meeting, slated to be released today, progress in the US-China trade dialogues, foreign fund flow, oil prices and rupee value against the dollar will also steer indices.
On Wednesday, the benchmark S&P BSE Sensex closed 66 points higher at 39,113 while the broader Nifty50 ended absolutely flat at 11,691.
The rupee inched up 2 paise to end at 69.68 against the US dollar
Asian shares were trading higher on Thursday with Japan’s Nikkei ruling 0.33 per cent higher. South Korea’s Kospi was, however, trading 0.08 per cent lower.
On Wall Street, the indices inched up during the overnight trade on Wednesday. Dow Jones Industrial Average added 38 points to settle at 26,504 while the S&P500 ended 9 points higher at 2,926. The Nasdaq too gained 33 points to close the session at 7,987.
In the commodities market, oil prices rose over 1 per cent on Thursday as official data showed greater than expected fall in the US crude inventories. Brent crude futures had risen 1.3 per cent to $62.64 by 6:00 am.