Crude prices rallied as the Organisation of Petroleum Exporting Countries (OPEC) surprised the markets with an agreement to cut oil production by 1.2 million barrels a day, in an effort to support oil prices.
The market is likely to trend higher tracking global cues. Crude prices rallied as the Organisation of Petroleum Exporting Countries (OPEC) surprised the markets with an agreement to cut oil production by 1.2 million barrels a day, in an effort to support oil prices. Crude oil prices have declined by more than half since mid-2014 because of global oversupply and an increase of US shale production.
Asian markets opened on a positive note early after OPEC reached its first deal since 2008 to cut oil production.
Australia's ASX 200 was up 0.58 percent, with strong gains in its energy sub-index, which climbed 6.76 percent and its materials sub-index, which was up 2.14 percent.
The Nikkei 225 surged 1.55 percent in early trade, likely because of the weaker yen which hovered at the 114 handle.
US stocks edged higher as an upbeat outlook from UnitedHealth lifted health insurers, though a sharp drop in oil prices weighed on energy shares and limited the advance.
The day's small gains followed a decline in the market on Monday. Analysts said the post-US election rally may be losing momentum, with the S&P 500 now up roughly 8 percent for the year to date.
The dollar and bond yields were sharply elevated early on Thursday after OPEC agreed to a deal to reduce output to clear a supply glut that has crunched oil prices and stoked global deflationary pressures.
Back home, the 30-share BSE Sensex surged 258.80 points or 0.98 percent to 26652.81 and the 50-share NSE Nifty jumped 82.35 points or 1.01 percent to 8224.50 yesterday.
Auto stocks are likely to be in focus today as November sales data will be announced. Demonetisation may hit auto sales as retail growth is expected to be sharply lower for all companies. Medium and heavy commercial vehicles (MHCV) segment may be impacted the most. Analyst expect 30 percent drop in retail volumes and passenger vehicle industry may see 20 percent drop in retail sales.
Oil and aviation stocks will be also keenly watched. Petrol price is hiked by a marginal 13 paise a litre while diesel rates were cut by 12 paise in line with global trends. Jet fuel price is cut by 3.7 percent ( Rs 1881) to Rs 48379/kl in Delhi.
Meanwhile, on macro economy front India’s gross domestic grew 7.3 percent in July to September, marginally quicker than the previous quarter’s 7.1 percent, but the revival could stutter in the coming months, hit by an economy-wide cash-crunch following the unexpected ban on Rs 500 and Rs 1000 currency notes.