Indian Shares Likely To Open On Flat Note

(RTTNews) - Indian shares are seen opening little changed on Wednesday after ending on a buoyant note the previous day.

Optimism over the India-U.S. trade deal and resumption of FII buying in the cash market may keep underlying sentiment supported somewhat in the wake of mostly weak global cues.

In a press briefing on Tuesday, Union Minister of Commerce and Industry Piyush Goyal stated that sensitive agricultural products and the dairy sector have been kept protected under the India-U.S. trade deal.

Benchmark indexes Sensex and Nifty jumped around 2.5 percent each on Tuesday after U.S. President Donald Trump unveiled a trade deal with India, helping ease tariff-related concerns that have weighed on domestic markets for months.

The Indian rupee jumped 122 paise to close at 90.27 against the dollar after Moody's Ratings said the reduction of the U.S. tariff rate on most Indian goods is credit positive for labor-intensive sectors such as gems, jewelry, textiles and apparel.

Moody's also said that India is unlikely to cease all Russian oil purchases immediately, but a complete shift toward non-Russian oil could tighten supply elsewhere, raise prices and pass through to higher inflation given that India is one of the world's largest oil importers.

Foreign institutional investors (FIIs) returned to Dalal Street in a big way on Tuesday, snapping a prolonged selling streak with their largest single-day purchase since October 28, 2025.

FIIs bought shares worth Rs. 5,426 crore in the cash market on Tuesday, while domestic institutional investors (DIIs) bought shares to the tune of Rs. 345 crore, as per exchange data.

U.S. stocks fell from near-record levels overnight amid a rotation out of technology stocks into economically sensitive shares. European markets ended on a flat note, giving up early gains, while Asian markets traded mixed this morning.

Ahead of a busy week of earnings from top companies, including Google and Amazon, Advanced Micro Devices forecast a slight decline in first-quarter revenue.

The dollar traded higher in Asian trade after declining in the New York session.

Treasuries were little changed as Fed Governor Stephen Miran reiterated the case for aggressive central bank interest rate cuts this year, in an interview on Fox Business Network.

Separately, Federal Reserve Bank of Richmond President Tom Barkin said the Fed still has "some distance to travel" before both parts of its dual mandate of maximum employment and price stability are in balance.

Gold was up more than 2 percent at $5,048 on ounce, building on its best day since 2008 in the previous session, on signs of renewed tensions between the United States and Iran.

U.S. President Trump has signed a $1.2tn (£880bn) budget to end a partial government, which will help fund most government agencies until the end of the fiscal year in September.

However, the Department of Homeland Security (DHS) will be funded only until the end of next week.

Oil extended gains after rising around 2 percent on Tuesday as the U.S. military shot down an Iranian drone that "aggressively" approached the Abraham Lincoln aircraft carrier in the Arabian Sea.