Sensex, Nifty Seen Flat To Higher At Open

(RTTNews) - Indian shares look set to open higher on Wednesday as reports suggest that the India-U.S. trade deal is in its final stages of negotiations.

That said, the upside may remain capped, and volatility cannot be ruled out as companies roll out their results for the June quarter and investors await more clarity on U.S. President Donald Trump's tariff policies.

Trump hardened his threat to raise tariffs on certain countries by his July 9 deadline, while Treasury Secretary Scott Bessent signaled there may be some extensions to wrap up major pacts by the Labour Day holiday.

Benchmark indexes Sensex and Nifty ended up around 0.1 percent each on Tuesday after a choppy session.

The rupee gained 25 paise to close at 85.51 against the greenback as policy worries kept the dollar under pressure in the overseas markets.

Asian markets were mixed this morning, with Japan's Nikkei and South Korea's Kospi falling sharply, as Trump escalated trade pressure on Japan with tariff threats over rice and cars.

The U.S. dollar wallowed near the lowest since February 2022 against major peers on concerns about the potential impact of Trump's spending bill, which cleared a critical hurdle and headed back to the House, where the Republicans hold a narrow majority.

Treasuries were steady after yields rose on Tuesday. Gold edged down slightly after climbing 2 percent over the previous two sessions. Oil prices were little changed ahead of an OPEC+ meeting to decide August output.

U.S. stocks ended mixed overnight as the Senate narrowly voted to approve President Donald Trump's massive tax cuts and spending bill and Fed Chair Jerome Powell once again reiterated the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering rates.

Two-year Treasury yield rose to a near one-week high.as a measure of U.S. manufacturing activity improved in June and job openings increased unexpectedly in May.

The narrower Dow jumped 0.9 percent to reach its best closing level in over four months, while the S&P 500 slid 0.1 percent for its first loss in four days. The tech-heavy Nasdaq Composite declined 0.8 percent.

European stocks closed broadly lower on Tuesday as investors monitored the European Central Bank's annual forum in Sintra, Portugal.

The pan-European STOXX 600 eased 0.2 percent. The German DAX lost 1 percent and France's CAC 40 finished marginally lower while the U.K.'s FTSE 100 rose 0.3 percent.