Sensex, Nifty Seen Opening Up In Cautious Trade

(RTTNews) - Indian shares look set to open higher on Wednesday after the International Monetary Fund (IMF) said India's economic reforms have helped the nation become a star performer, contributing over 16 percent to global growth.

Underlying sentiment may also remain supported somewhat after the World Health Organization (WHO) classified the JN.1 coronavirus strain as a "variant of interest" and said current evidence shows risk to public health was low from the strain.

Financials could be in focus today after the Reserve Bank of India (RBI) tightened norms for banks and NBFC's investing in Alternate Investment Funds.

IT stocks may face selling pressure after Accenture forecast Q2 revenue below estimates due to muted IT spending.

Benchmark indexes Sensex and Nifty hit fresh record highs before finishing modestly higher on Tuesday. The rupee fell by 9 paise to close at 83.19 against the dollar.

Asian markets traded mostly higher this morning after Wall Street extended its rally on Tuesday.

The dollar was little changed while yields on the U.S. 10-year note hovered at 3.91 percent as investors awaited more U.S. data including Friday's update on the Personal Consumption Expenditures price index, the Fed's preferred inflation measure, for more clues on the Fed's rate trajectory.

Oil prices rose for a third straight session on fears of more supply disruptions in the Red Sea.

U.S. stocks closed higher overnight despite warnings from Fed officials trying to rein in expectations for aggressive rate cuts next year.

Investors shrugged off mixed data showing that housing starts surged by 14.8 percent in November, while building permits declined by 2.5 percent.

The Dow and the tech-heavy Nasdaq Composite both climbed around 0.7 percent to extend gains for a ninth consecutive session, while the S&P 500 rose 0.6 percent.

European stocks rose on Tuesday after Eurozone inflation came in unchanged at 2.4 percent in November, matching expectations.

The pan European STOXX edged up 0.4 percent. The German DAX climbed 0.6 percent, France's CAC 40 finished marginally higher and the U.K.'s FTSE 100 advanced 0.3 percent.