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Indian shares are set to open higher on Thursday, after minutes of the Federal Reserve policy meeting signalled that the U.S. central bank is strongly leaning towards a rate cut next month.

The GIFT Nifty was trading at 24,880, as of 07:42 a.m. IST, indicating that the NSE Nifty 50 will open above its close of 24,770.2 on Wednesday.

Other Asian markets opened higher, with the MSCI Asia ex-Japan index rising 0.2%. Wall Street equities closed marginally higher overnight, after minutes of the Fed policy meeting indicated the likelihood of a September rate cut.

Investors now await Fed Chair Jerome Powell's address on Friday for confirmation that the U.S. central bank is about to start loosening credit conditions from September. [MKTS/GLOB]

India's benchmark indexes Nifty 50 and S&P BSE Sensex witnessed a five-session gaining streak, rising about 2.5% each.

Analysts expect domestic equities to remain buoyant, but see limited potential for significant upside due to elevated valuations.

Foreign institutional investors remained sellers for a third session in a row on Wednesday, offloading shares worth 8 billion rupees ($95.34 million) on a net basis. Domestic institutional investors, on the other hand, remained net buyers for the 13th straight session.

STOCKS TO WATCH

** Welspun Enterprises' unit gets order worth 2.60 billion rupees

** Zomato says it will buy movie and events-ticketing businesses of Paytm for $244.2 million

** Kalyan Jewellers sees divestment of 2.36% stake by Warburg Pincus affiliate

($1 = 83.9140 Indian rupees)