The markets are set to open on a steady note after the rally in the previous session and a favourable set of cues from the global indices.
The indices had a strong finish on Wednesday, with the Sensex consolidating its hold above the psychological 20k mark and hitting a 1-1/2-month high to end the session stronger by 242 points at 20,267 and the Nifty reclaiming the 6k mark to end at 6066, up 67 points.
On the global front, the S&P 500 headed for its best December in nearly two decades as US stocks advanced in thin trade on Wednesday, lifted by investor optimism about the economy in 2011. The Dow was up 10 points at 11,586 and the Nasdaq was up four points at 2,666. And the Asian markets are mostly trading higher this morning; Hong Kong shares climbed in early trade, with metal and local property shares leading the rise. KLSE Composite, NZSE and Seoul Composite were trading flat while Straits Times, Taiwan Weighted and Jakarta Composite added 0.1% - 0.3%.
One would have to keep an eye on the macro environment as the government is set to unveil data on some wholesale price indices for the year through 18 December, viz. the food price index, the primary articles index and fuel price index.The expiry of the near-month F&O contracts is also likely to cause volatility in the later part of the session.