Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 3 points at the opening bell.

Overseas, Asian stocks were trading higher on Thursday as the United States and Iran backed away from the brink of further conflict in the Middle East and investors reversed their safety plays.

In US, stocks posted gains, with the Nasdaq notching a new record close, after remarks by President Trump suggested the US and Iran were refraining from further military action following attacks on US bases overnight, in retaliation for last week's killing of Maj. Gen. Qassem Soleimani by American forces.

Back home, key benchmark indices endured a volatile session and ended with small losses on Wednesday. Sentiment was fragile after Iran fired more than a dozen missiles at two US military targets inside Iraq in response to the United States' killing of senior Iranian military commander Qassem Soleimani last week. The barometer BSE S&P Sensex fell 51.73 points or 0.13% to 40,817.74. The index fell 392.92 points, or 0.96% at the day's low of 40,476.55 in morning trade.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 515.85 crore yesterday, 8 January 2020, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 748.40 crore, yesterday, 8 January 2020, as per provisional data.