Sensex opens 165 points up

The 30-share index rose further by 165.24 points,or 1 per cent,to 16,619.54 in early trade. Yesterday,it had recorded a hefty rise of 433.66 points,the highest single-day gain this year.

All the sectoral indices,led by metals and banking,were trading in the positive with gains of up to 1.38 per cent.

Similarly,the wide-based National Stock Exchange Nifty index regained the 5,000 mark to trade 45.20 points,or 0.90 per cent higher,at 5,042.30.

Brokers said sentiments turned bullish following Prime Minister Manmohan Singh8217;s bid to fast track the big-ticket infrastructure projects and expexctations of a rate cut by the Reserve Bank,which triggered widespread buying.

Besides,a firming trend on other Asian bourses following overnight gains on the US market after the European Central Bank said it would keep open its unlimited liquidity loans for euro-zone banks at least through 2012,further supported the sentiments here,they said.

In Asia,Hong Kong8217;s Hang Seng Index rose by 1.53 per cent and Japan8217;s Nikkei Index by 1.26 per cent in early trade today. The US Dow Jones Industrial Average ended 2.37 per cent higher yesterday.

Pre open: Sensex to watch

GLOBAL MARKETS

The near-month derivative contract for India8217;s NSE index at Singapore Exchange rose 1.4 percent,while MSCI Asia ex-Japan gained 1.8 percent.

Asian shares rose on Thursday on signs European policymakers were seeking a solution for ailing Spanish banks and amid growing expectations for additional monetary stimulus if major economies deteriorate further.

US stocks jumped on Wednesday,giving the Samp;P 500 its best day since December,as talk of a rescue of Spain8217;s troubled banks and hopes for more monetary stimulus sparked a rebound from recent selling.

FACTORS TO WATCH

Indian energy conglomerate Reliance Industries holds its annual shareholder meeting. 0530GMT

INDIAN STOCKS TO WATCH

INFRASTRUCTURE

India8217;s government on Wednesday vowed to push ahead with major transport and power projects in the current financial year,buoying stocks in infrastructure companies with an attempt to inject some life into the flagging economy.

ENERGY/COMMODITIES

A global glut of liquefied natural gas LNG supplies from 2015,led by U.S. and Australian exports,will empower top Asian consumers and weaken the influence of oil on how gas is priced,leading to cheaper imports,Eurasia Group analysts said.

GAIL India Ltd has allotted nearly 1 billion to fund purchases of shale gas assets in the United States and Canada,B.C. Tripathi,chairman and managing director of GAIL India,said on Thursday.

Indian sugar extended losses on Wednesday for the fifth session in a row to hit its lowest level in nearly three months,hurt by sluggish demand at the start of monsoon rains and ample supply in the domestic market.

Swan Energy is in talks with state-owned oil and gas companies to sell a small stake in its upcoming floating LNG unit in Pipavav,Gujarat.

TELECOM

Malaysian telecom giant Axiata Group has approached Idea Cellular to build a transnational tower company,with operations across Southeast Asian markets.

AUTOS

Major auto makers in India warned on Wednesday that government proposals to raise the tax on cars running on heavily subsidised diesel will hurt a fast-growing sector popular with India8217;s emerging middle class.

OTHER FACTORS TO WATCH

Indian debt/FX factors to watch

Aussie jumps after job data surprise

Brent crude above 100 on euro zone hopes,Fed

Foreign institutional investor flows

For closing rates of Indian ADRs