Sensex, Nifty Seen Opening Flat To Higher

Indian shares look set to open flat to slightly higher on Thursday as investors react to positive trade data and encouraging earnings news from Infosys.

India's merchandise trade balance swung to a surplus in June, the first in the last decade, as imports plummeted amid weak demand and supply disruptions due to the coronavirus pandemic, data from the Ministry of Commerce & Industry showed.

The trade balance showed a surplus of $0.79 billion for June versus a deficit of $15.28 billion in the same month last year. Economists had forecast a shortfall of $4.50 billion.

Infosys beat forecasts to report a smaller-than-expected 2 percent decline in June quarter profit, and surprised markets by giving full-year constant currency revenue growth guidance.

Meanwhile, Indian and European officials on Wednesday announced the launch of a high-level economic and investment dialogue to discuss bilateral trade and multilateral issues of interest.

Benchmark indexes Sensex and the Nifty gave up early gains to end on a flat note Wednesday, while the rupee rose by 27 paise to settle at 75.15 against the U.S. dollar after the ICMR said human clinical trials for a potential vaccine for Covid-19 have been initiated in the country.

Asian markets are moving lower this morning even as official data showed China's GDP expanded 3.2 percent year on year in the second quarter of 2020 amid coronavirus headwinds.

Industrial output rose an annual 4.8 percent in June, expanding for the third straight month, while retail sales fell 1.8 percent year-on-year, separate reports showed.

Fixed asset investment fell 3.1 percent in the first half of the year from the same period last year.

The dollar extended declines ahead of the European Central Bank's meeting and gold held steady, while oil prices fell slightly after OPEC and allies such as Russia agreed to ease record supply curbs from August.

U.S. stocks fluctuated before ending mostly higher overnight as upbeat news on the coronavirus vaccine front, encouraging industrial production data and a blockbuster earnings report from Goldman Sachs helped traders shrug off news of a record single-day spike in new Covid-19 cases in the U.S.

The Dow Jones Industrial Average and the S&P 500 rose about 0.9 percent to close at their best closing levels in over a month, while the tech-heavy Nasdaq Composite index gained 0.6 percent.

European stocks ended Wednesday's session on a buoyant note, thanks to positive news on the coronavirus vaccine front and optimism about a massive stimulus announcement from the European Union.

The pan European Stoxx 600 advanced 1.8 percent. The German DAX and the U.K.'s FTSE 100 both climbed around 1.8 percent while France's CAC 40 index rallied 2 percent.