Sensex, Nifty Set To Open On Firm Note

(RTTNews) - Indian shares may open higher on Wednesday as investors react to a spate of positive global news flow.

That said, volatility cannot be ruled out due to prevailing uncertainty regarding an interim trade deal between the U.S. and India ahead of the August 1 deadline and continued foreign fund outflows.

The prospect of an interim trade deal between the U.S. and India have dimmed due to persistent disagreements over key agricultural and dairy products.

Benchmark indexes Sensex and Nifty ended a choppy session marginally lower on Tuesday while the rupee fell by 7 paise to close at 86.38 against the greenback, extending losses for a fifth consecutive session.

Foreign portfolio investors (FPIs) offloaded shares worth Rs 3,548 crore on a net basis Tuesday, while domestic institutional investors (DIIs) net bought shares worth Rs 5,239 crore, according to provisional NSE data.

Asian markets were mixed this morning, with Japan's Nikkei surging nearly 3 percent as U.S. President Donald Trump's announcement of a "massive" trade deal with Japan eased concerns about the tariff war.

The deal includes a 15 percent American tariff on Japanese imports and a $550 billion investment plan.

"As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement," Japanese Prime Minister Ishiba told reporters after the announcement.

Meanwhile, U.S. Treasury Secretary Scott Bessent said he will meet his Chinese counterparts in Stockholm next week for their third round of trade talks and will work out what is likely an extension" to the current Aug. 12 deadline for negotiations.

He said that the negotiations with China can now take on a broader array of topics, potentially including Beijing's continued purchases of "sanctioned" oil from Russia and Iran.

Also, Bessent said that he saw no reason for Fed Chair Jerome Powell to step down and that "based on the way they cut rates last fall, they should be cutting rates now."

On the other side, President Trump labelled Fed Chair Jerome Powell a "numbskull" and predicted his departure in eight months, even though Powell's term officially ends in May 2026.

The U.S. dollar was under pressure against the yen in Asian trade and gold slipped from a five-week high while oil prices rose after falling for three consecutive sessions.

U.S. stocks ended mixed overnight as investors reacted to a slew of earnings and fresh trade developments, with the announcement of a new trade agreement with the Philippines sparking hopes for broader progress on international trade.

The tech-heavy Nasdaq Composite dipped 0.4 percent, while the S&P 500 inched up marginally and the Dow added 0.4 percent.

European stocks ended lower for a third consecutive session on Tuesday due to growing uncertainty over U.S.- EU trade talks and some disappointing earnings updates.

The pan European STOXX 600 declined 0.4 percent. The German DAX lost 1.1 percent and France's CAC 40 shed 0.7 percent while the U.K.'s FTSE 100 inched up by 0.1 percent.