Indian equity indices showed smart recovery despite opening the day in red territory as they managed to outclass most of the regional peers in Asia and Europe by good a margin. Sentiments got a boost with Organization for Economic Cooperation and Development (OECD) in its Global Economic Outlook stating that India's growth rate is expected to hover near 7.5% this year as well as next even as many emerging market economies continue to lose momentum. Further, appreciation in the rupee against dollar too supported sentiments. Reversing its three-day downward trend, Indian rupee recovered by 20 paise to 67.23 against the US dollar at the time of equity markets closing on fresh selling of the American currency by exporters. Besides, some support also came in with Economic Affairs Secretary Shaktikanta Das stating that India has done well on fiscal and economic parameters and the GDP growth can touch 8 per cent in the current fiscal with good monsoon, global headwinds notwithstanding. Das also said overall macroeconomic numbers and fiscal parameters of the country are 'very very robust'. On the global front, Asian stocks ended mixed on Thursday after surveys showed global manufacturing activity and demand remain weak, while European shares steadied, with investors avoiding taking large positions ahead of the European Central Bank's policy meeting. Back home, the local benchmark indices got off to a soft start as the indices showed signs of consolidation in early trade, ahead of the European Central Bank (ECB) and Organization of the Petroleum Exporting Countries (OPEC) meeting scheduled today. Thereafter, the key indices remained choppy for most part of the day but saw a sudden spurt in buying in late afternoon trades post the sanguine European markets opening. Finally, the BSE Sensex gained 129.21 points or 0.48% to 26843.14, while the CNX Nifty rose 39 points or 0.48% to 8,218.95.

The US markets closed higher on Thursday, on back of encouraging reports and ahead of the highly anticipated employment report due Friday morning. On the economy front, initial US jobless claims fell slightly in late May to the lowest level in five weeks, showing virtually no change in the low rate of layoffs taking place across the economy. New claims in the period running from May 22 to May 28 dropped by 1,000 and stood to a seasonally adjusted 267,000. The average of new claims over the past month slipped by 1,750 and stood to a seasonally adjusted 276,750. The four-week average smooths out fluctuations in the more volatile weekly report and is seen as a more accurate predictor of labor-market trends. Earlier, there were some declines too, with oil prices falling after the Organization of the Petroleum Exporting Countries failed to reach an agreement on oil production caps at the conclusion of its Vienna meeting, continuing a hands-off policy that members say is gradually bringing supply and demand back into balance and boosting prices. The Dow Jones Industrial Average was up 48.89 points or 0.27 percent to 17,838.56, Nasdaq was higher by 19.11 points or 0.39 percent to 4,971.36 while, S&P 500 gained 5.93 points or 0.28 percent to 2,105.26.

Crude oil futures bounced back, witnessing big volatility on Thursday and after hitting session's-lows, managed to reverse the losses, as a sharp decline in U.S. crude inventories offset a widely expected decision by OPEC to leave its production ceiling unchanged. Earlier, the pivotal OPEC meeting failed to produce a deal on capping output and ended its semi-annual meeting in Vienna without making any adjustments to its production ceiling. Iran refused to cooperate with requests to limit production as it attempts to make up for years of harsh sanctions. Meanwhile, US Energy Information Administration (EIA) said commercial crude oil inventories decreased by 1.4 million barrels for the week ending on May 27. Total motor gasoline inventories decreased by 1.5 million barrels for the week, while distillate fuel inventories declined by 1.3 million barrels. Benchmark crude oil futures for July delivery inched up by $0.12 or 0.24 percent to $49.14 a barrel after trading in a range of $47.98 and $49.47 a barrel on the New York Mercantile Exchange. In London, Brent crude for August delivery closed at $50.00, up $0.28 or 0.55 percent on the ICE.

Indian rupee bounced back on Thursday, paring most of the losses it occurred in last session in a knee-jerk reaction to some reports that the RBI governor was not seeking a second term. The domestic currency turned jubilant from the very beginning on account of dollar selling by banks and exporters. The gain in other regional currencies too supported the rupee after the dollar weakened ahead of the employment figures from the US. The local equity markets too turned higher in the late trade and boosted the case of foreign fund inflow. On the global front the dollar touched a two-week low against the yen on Thursday; the greenback weakened ahead of the release of key US employment data due later in the day. Finally, the rupee ended at 67.29, 16 paise stronger from its previous close at 67.45 on Wednesday.

The FIIs as per Thursday's data were net buyers in equity segment, while they were net sellers in debt segment. In equity, the gross buying was of Rs 4000.98 crore against gross selling of Rs 3657.42 crore, while in the debt segment, the gross purchase was of Rs 693.93 crore with gross sales of Rs 1767.48 crore.

The US markets showing another turnaround after initial fall, made a positive close in last session, with traders looking ahead to the release of the closely watched monthly jobs report on Friday. Early decline was mainly induced by the decrease in crude prices after OPEC meeting failed to result in an agreement on a new output target. The Asian markets have made mostly a positive start, tracking the rebound in the US markets. The Japanese market was moving higher after yen pulled back from its strongest level since mid-May. The Indian markets spurted in the final hours and the benchmark indices posted gains of about half a percent in last session. Today, the start is likely to be in green on sanguine global cues. Traders will be getting support with the India Meteorological Department (IMD) stating that the country is all set to receive above-normal monsoon rains this year with a long-period average of 106 per cent. The Met department said that conditions are becoming favourable for the onset of monsoon and it would hit the Indian coast in the next 4-5 days.  Also, there will be some encouragement with Finance Minister Arun Jaitley's statement that India will attempt to keep the proposed Goods & Services Tax ( GST ) rate as moderate as possible and the government will push for passage of the bill introducing the levy in the upcoming monsoon session of Parliament. Finance Minister has also said that the government will push ahead with its reform agenda to retain the fastest growing large economy tag and help India move towards becoming "a more developed economy". There will be some buzz in the infra stocks, as the Reserve Bank of India (RBI) has  allowed NBFCs to refinance any existing infrastructure and other project loans by way of take-out financing, without it being considered as restructuring. On the same time good monsoon forecast will boost the consumer goods and auto stocks.

Support and Resistance: NSE Nifty and BSE Sensex

Nifty Top volumes

• Reliance Industries' wholly owned subsidiary Reliance Industrial Investments and Holdings has invested $16 million in US-based tech start-up NetraDyne.
• Bajaj Auto, the second-largest motorcycle manufacturer has registered rise of 1% in total sales to 347,655 units in May 2016 against 345,438 units in May 2015.
• Tata Motors reported total commercial and passenger vehicles sales in May 2016 which stood at 40,071 vehicles, a growth of 1% over 39,496 vehicles sold in May 2015.
• Mahindra and Mahindra's South Korean subsidiary SsangYong Motor has sold a total of 13,282 units in May 2016 - 9,191 units in domestic sales and 4,091 in exports.
• Wipro has open sourced its big data product, Big Data Ready Enterprise, which makes big data technology adoption similar and faster by optimizing big data workloads under an integrated unified framework.