BSE Sensex to start higher but seen volatile

MUMBAI (Reuters) – The BSE Sensex is set to open higher on Friday, mirroring the rise in world equities after better-than-expected U.S. jobs data bolstered investor confidence in the global economy.

Data showed fewer U.S. workers filed new jobless insurance claims than forecast last week -- hitting a 10-month low. U.S. non-farm productivity rose more than expected in the third quarter.

"With global cues looking good, we should also open in the positive," said Kunal Sukhani, manager at Asian Markets Securities.

"But volatility will continue to remain high, until investors are able to establish a direction for the market," he said.

Energy giant Reliance Industries will be watched as hearing in its high-profile gas pricing dispute with Reliance Natural Resources resumed on Thursday.

Asian shares were firm with the MSCI's measure of markets other than Japan trading 1.7 percent higher by 0326 GMT, while Japan's Nikkei was up more than a percent.

The Nifty India stock futures in Singapore were trading 1 percent higher, indicating a positive start in the domestic market.

On Thursday, the 30-share BSE index closed up 0.95 percent, or 151.77 points, at 16,063.90 after falling as much as 2.2 percent during trade.

(For more news on Reuters Money visit www.reutersmoney.in)