GIFT Nifty pointed to a higher open after Asian markets rebounded, while investors tracked Middle East tensions, the Federal Reserve decision, earnings and foreign fund flows.
Indian shares were set to open higher on Wednesday, with GIFT Nifty futures at 24,225.5 as of 7:52 a.m. IST, indicating the benchmark Nifty 50 could start above Tuesday's close of 23,985.35. The expected rise tracked a rebound in Asian markets after a sharp selloff tied to concerns over valuations, competition and AI spending ahead of major U.S. technology earnings. Investors were also watching the Federal Reserve's policy decision later in the day, with the U.S. central bank widely expected to leave rates unchanged even as more policymakers have voiced concern about inflation. Oil markets remained volatile as Brent crude futures jumped about 5% on shrinking U.S. crude inventories after falling 16.5% over the previous three sessions on a pause in fighting between Washington and Tehran. The U.S. military said it intercepted multiple ballistic missiles launched by Iran toward U.S. forces in the Middle East, while U.S. President Donald Trump said there were "good talks" under way but threatened to restart strikes unless negotiations delivered. In India, earnings and institutional flows stayed in focus. Foreign investors bought shares worth 7.55 billion rupees on Tuesday, their first net purchase in five sessions. Larsen & Toubro maintained its annual revenue and margin forecast after posting higher first-quarter profit, and sugar stocks were set to be watched after the government said no sugar dealer can hold stocks for more than 30 days.