Pre-market: Markets likely to open strong

The markets are likely to open strong on Thursday due to positive global cues. The Dow Jones industrial average gained 0.66 per cent to 12716 points while the Nasdaq rallied 1.22 per cent to 2848 points.

Strong manufacturing data in the US and positive reports on the Greek debt crisis brought the optimism. Also, corporate earnings are in line with expectations.

In Asia too, the markets have opened in the green. Japan’s Nikkei is trading 0.8 per cent higher while Hong Kong’s Hang Seng is up 1.2 per cent. The SGX Nifty was trading 34 points higher at 5304 at 7:50am.

Back home, the news flow is positive. The Manufacturing Purchasing Managers Index or PMI posted the fastest growth in eight months, fuelling economic optimism and a brightening chances of a quick revival. With strong PMI, we can expect an across the board rally.

Automobile stocks are likely to remain in the limelight after strong sales numbers for January. Binani Industries will buy Belgium-based 3B, a fibre glass maker for 275 million euros. Indian steel makers have reassured customers that they will hold prices to aid customers.

There is positive news from airlines as Kingfisher said it will pay its staff and Air India’s lenders will convert loans into NCDs with government guarantee.

Also keep a tab on ONGC, Thermax, Marico and Corporation Bank as they announce their respective December quarter results.