Domestic stocks are likely to open in the green tracking positive global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 75 points at the opening bell.

Overseas, Asian stocks are trading higher on Thursday following positive news overnight around the development of a potential coronavirus vaccine.

Tensions will be watched, as Hong Kong police announced Wednesday they had made their first arrests after China's national security law went into effect.

In US, the Dow finished lower Wednesday, but the tech-heavy Nasdaq was vaulted to a fresh record close, giving the year's second half a mixed start as investors focused on signs of economic recovery from the coronavirus crisis and a new Fed promise for clarity on the path of rates.

Market participants parsed minutes from the Fed's June 9-10 meeting, where the rate-setting Federal Open Market Committee agreed to provide clarity in future communications about what would cause the central bank to keep rates close to zero or move them higher. The committee kept federal-funds rates at a range between 0% and 0.25% and signaled that it might hold levels there until at least 2022.

The U.S. House of Representatives passed legislation on Wednesday that would penalize banks doing business with Chinese officials who implement a national security law.

The Institute of Supply Management said its manufacturing purchasing managers index climbed to 52.6% from 43.1% in May and from an 11-year low of 41.5% in April. Any reading above 50 represents an expansion in economic activity.

Back home, domestic benchmarks ended with strong gains on Wednesday. Positive Asian cues and recovering domestic macro data cheered investors. Banks stocks rallied while pharma stocks extended losses. The barometer S&P BSE Sensex rallied 498.65 points or 1.43% at 35,414.45. The Nifty 50 index jumped 127.95 points or 1.24% at 10,430.05.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,696.45 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,377.13 crore in the Indian equity market on 1 July, provisional data showed.