Sensex, Nifty Set To Follow Asian Peers Higher

(RTTNews) - Indian shares are seen opening higher on Wednesday on the back of positive cues from other Asian markets.

The upside, however, may remain capped as investors digest disappointing trade data and react to mounting U.S.-China tensions.

India's trade deficit widened to a record $31 billion in July as a result of elevated commodity prices and the depreciating rupee, preliminary data released by the commerce ministry showed.

Geopolitical tensions have intensified, with China vowing 'targeted military actions' in response to U.S. House Speaker Nancy Pelosi's visit to Taiwan.

Separate reports suggest that the United States is considering limiting shipments of American chipmaking equipment to memory chip makers in China including Yangtze Memory Technologies Co Ltd (YMTC).

Meanwhile, the government has revised the windfall tax on crude, aviation turbine fuel and diesel exports in line with softening international petroleum product prices.

Benchmark indexes Sensex and the Nifty reversed early losses to finish marginally higher on Tuesday, while the rupee jumped 41 paise to close at 78.65 against the dollar, aided by FPI inflows and softening crude prices.

Asian markets were broadly higher this morning while the dollar climbed as hawkish comments from Fed officials prompted a jump in Treasury yields.

WTI crude oil hovered around $94 a barrel ahead of an OPEC+ crude production meeting.

U.S. stocks ended lower for a second day running on Tuesday, as investors weighed the risks of worsening relationship between the U.S. and China as well as hawkish comments from regional presidents about the central bank's path forward.

Job vacancies fell in June to their lowest level in nine months, raising economic slowdown fears. The Dow fell 1.2 percent, the S&P 500 shed 0.7 percent and the tech-heavy Nasdaq Composite slipped 0.2 percent.

European stocks fell on Tuesday amid rising Sino-U.S. tensions and concerns about slowing growth.

The pan European Stoxx 600 declined 0.3 percent. The German DAX slid 0.2 percent, France's CAC 40 index gave up 0.4 percent and the U.K.'s FTSE 100 ended little changed with a negative bias.