Sensex, Nifty Set To Follow Global Peers Higher; F&O Expiry Eyed

(RTTNews) - Indian shares may open higher on Wednesday, with underlying sentiment likely to be helped by firm global cues and domestic data showing that India's current account deficit narrowed to 0.2 percent of GDP in Q4 of FY23.

Volatility is not ruled out on eve of F&O expiry scheduled today and a holiday on Thursday for Bakri Id festival.

Benchmark indexes Sensex and Nifty jumped around 0.7 percent each on Tuesday, with financials leading the surge. The rupee ended little changed against the dollar.

Asian markets traded mixed this morning after U.S. bond yields rose overnight on expectations that the Federal Reserve has further to go in tightening monetary policy.

Data showed China's industrial profits tumbled 18.8 percent in the first five months of 2023, adding to calls for Beijing to provide more stimulus.

Australian inflation rose less than expected in May, easing fears that the Reserve Bank will again raise interest rates.

The dollar index retreated in Asian trade and gold steadied near three-month lows while oil edged up after a mixed industry report on U.S. crude stockpiles.

U.S. stocks advanced overnight on economic optimism on the back of positive economic data.

New orders for key manufactured capital goods unexpectedly rose in May, sales of new single-family homes surged in the month and a measure of U.S. consumer confidence surged to a near 1-1/2 year high in June, helping ease concerns about an impending recession.

The Dow gained 0.6 percent to snap a six-session losing streak, while the S&P 500 climbed 1.2 percent and the tech-heavy Nasdaq Composite rallied 1.7 percent.

European stocks finished Tuesday's session slightly higher, as reports about the likelihood of additional Chinese stimulus offset hawkish remarks from ECB President Christine Lagarde.

The pan European STOXX 600 ended flat with a positive bias. The German DAX edged up 0.2 percent, the U.K.'s FTSE 100 inched up 0.1 percent and France's CAC 40 rose 0.4 percent.