The market is likely to see a firm start as most Asian markets edged higher on Thursday on news that Greece will receive its latest debt bailout payment. However, selling by foreign funds in the prior three trading sessions and weakness in the rupee may cap gains.

Key benchmark indices fell for the second straight day on Wednesday, 9 May 2012, to reach their lowest closing level in 16-weeks. The BSE Sensex lost 66.60 points or 0.4% to settle at 16,479.58, its lowest closing level since 18 January 2012.

Foreign institutional investors (FIIs) sold shares worth a net Rs 376.34 crore on Wednesday, 9 May 2012. They sold shares worth Rs 369.30 crore on Tuesday, 8 May 2012, and Rs 592.90 crore on Monday, 7 May 2012, as per data from Securities & Exchange Board of India.

Most Asian markets gained on Thursday on news that Greece will receive its latest debt bailout payment. Key benchmark indices in China, Japan, Indonesia, Singapore, and Taiwan were up by 0.03% to 0.35%. Hong Kong and South Korea fell 0.14% and 0.13%.

US stocks fell on Wednesday as turmoil in Europe weighed on sentiment, but news that Greece will receive its latest debt bailout payment helped cut losses late in the session. The Dow Jones Industrial Average fell 97.03 points, or 0.75%, at 12,835.06. The Standard & Poor's 500 Index was down 9.14 points, or 0.67%, at 1,354.58. The Nasdaq Composite index fell 11.56 points, or 0.39%, at 2,934.71.

A report indicated that Greece appeared to have averted an imminent funding crisis, however, after the board of the European Financial Stability Facility agreed to a scheduled 5.2 billion euro ($6.72 billion) payment.