Sensex, Nifty Seen Opening On Cautious Note

(RTTNews) - Indian shares may open on a flat note Wednesday as investors weigh global uncertainties and await cues from Nvidia's earnings results and the release of minutes from the Federal Reserve May meeting.

Signs of moderating corporate earnings growth, concerns about lofty valuations, delays in finalizing the India-U.S. trade agreement and rising Covid-19 cases across Southeast Asia may also keep investors on edge.

Global cues remain mostly positive as a truce on tariffs offset investor anxiety around the ballooning U.S. debt levels.

Benchmark indexes Sensex and Nifty fell around 0.8 percent and 0.7 percent, respectively on Tuesday as investors booked profits after two days of gains.

The rupee retreated from a two-day surge and fell by 30 paise to close at 85.40 against the dollar.

Asian markets were mostly higher this morning, tracking a rally on Wall Street overnight.

A slight retreat in the dollar and lower U.S. bond yields helped push gold prices higher in Asian trade. Oil ticked higher on concerns over potential new sanctions on Russia and stalled progress in U.S.-Iran nuclear talks.

U.S. stocks rose sharply overnight as President Trump agreed to delay a threatened 50 percent tariffs on imports from the European Union and data showed U.S. consumer confidence rebounded sharply in May after a prolonged decline.

The Dow jumped 1.8 percent and the S&P 500 rallied 2.1 percent to snap four-day losing streaks, while the tech-heavy Nasdaq Composite soared 2.5 percent.

European stocks closed higher on Tuesday after the release of encouraging German consumer sentiment and French consumer inflation data.

The German DAX advanced 0.8 percent to reach a new record high after the German government said it will ramp up public investment to 110 billion euros ($125 billion) this year to revive a sluggish economy.

The U.K.'s FTSE 100 added 0.7 percent while France's CAC 40 finished marginally lower. The pan European STOXX rose 0.3 percent, building on Monday's 1 percent rise.