Indian markets are expected to open higher on the back of strong global cues. The US markets had a very strong closing and the S&P 500 saw its best rally of 2014 after retail sales in the US came in better than expected. Asian markets are trading higher with the Japanese Nikkei up almost 1.6 per cent.

Back home investors would closely watch the WPI inflation data due later today. Banking stocks may rally if the data comes in lower than expected.

Coal India may react after the company decided to pay a hefty dividend of Rs 29 per share, most of which is likely to go to the government.

Shares of Yes Bank are expected to be volatile after the company is set to declare its results later today. The stock had gained more than 1 per cent in trade today. Development Credit Bank is also likely to see some interest ahead of its results.

Reliance Industries might continue to see some buying interest after reports said that India's largest private sector company was eyeing stake in a Venezuela block. Also, watch for Ranbaxy Labs which has had two successive days of decline after US F DA concerns over one of its plants.

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