Muted start to Sensex likely; Infosys to be in focus

Indian stock markets are likely to start on a weak note on Thursday according to futures trade on the Singapore Exchange. The SGX Nifty traded 19 points or 0.31 per cent lower at 6,032 as of 08.35.

The spot Nifty had closed 1.3 per cent higher at 6,007 on Wednesday, while the BSE Sensex ended 265 points up at 20,249.

IT stocks would be in focus ahead of Infosys' Q2 earnings announcement on Friday. Infosys is India's second largest outsourcer.

Asian markets were mixed, with Japan's Nifty benchmark trading 0.8 per cent higher. The Hang Seng, however, was down over 0.8 per cent.

Overnight, signs that lawmakers are making moves to end a stalemate in Washington and avert a US government debt default halted a slump on the stock market Wednesday.

The Dow Jones industrial average rose 26.45 points, or 0.2 per cent, to 14,802.98. The S&P 500 index gained 0.95 points, or 0.1 per cent, to 1,656.40. The index lost 2 per cent in the first two days of this week as concerns grew that politicians would fail to reach a deal before the government hits its debt ceiling on Oct. 17.

President Barack Obama is making plans to talk with Republican lawmakers at the White House in the coming days as pressure builds on both sides to resolve their deadlock over the federal debt limit and the partial government shutdown before the U.S. Treasury's borrowing authority is exhausted next week.

The White House nominated Federal Reserve Vice Chair Janet Yellen for the top position at the central bank in an expected move. Investors expect Yellen to continue the aggressive economic stimulus policies championed by the outgoing Chairman Ben Bernanke.

The Federal Reserve is buying $85 billion of bonds a month to hold down long-term interest rates and bolster the economy. The central bank's stimulus has been a crucial support for a stock market rally that began more than four years ago.

Investors also got more insight into the Fed's thinking Wednesday after the central bank published minutes from its September meeting Wednesday.

Nearly every member of the Federal Reserve thought the central bank should see more economic data before slowing its bond purchases. But worries about whether a delay would confuse markets made the decision a close call. Many expected policy maker to start cutting stimulus.

(With inputs from AP)