(RTTNews) - Indian shares are seen opening on a cautious note Wednesday as investors assess mixed signals over the status of U.S.-Iran peace talks and await upcoming RBI rate decision on Friday, along with its communication on the rupee for directional cues.
Meanwhile, the chief negotiators of India and the U.S. began a three-day round of trade talks in New Delhi on Tuesday to recalibrate the pact finalized in February.
Negotiations are now focused on "commas and full stops", commerce and industry minister Piyush Goyal said.
Benchmark indexes Sensex and Nifty rose around half a percent each on Tuesday after four days of losses.
The rupee weakened by 29 paise to close at 95.27 against the dollar, pressured by foreign fund outflows and elevated oil prices.
Foreign investors net sold shares worth Rs 8,363 crore on Tuesday while domestic institutional investors net bought shares to the extent of Rs 9,589 crore, according to provisional exchange data.
Asian stocks were broadly higher this morning after renewed enthusiasm for the artificial-intelligence trade drove U.S. equities to records overnight.
The dollar continued to strengthen, and gold was subdued at $4,477 an ounce while Brent crude futures rose toward $97 a barrel, extending gains for a third straight session amid continued uncertainty surrounding U.S.-Iran peace talks.
Iranian media had reported that talks with the U.S. were halted amid continued fighting in Lebanon. U.S. President Donald Trump said reports of stalled talks were "fake news" and that the two sides have been "continuously" having conversations.
A senior Iranian military officer said that a resumption of hostilities with the United States was inevitable.
It was reported that U.S. forces defeated multiple ballistic missiles and drones on Tuesday, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran across the Middle East.
Overnight, U.S. stocks eked out modest gains to reach record closing highs for a third day running as ongoing AI momentum offset inflation fears and rate hike concerns.
President Trump said talks for a deal with Iran are continuing, but media reports suggested that Iran was taking 'stern' approach in negotiations and hasn't been in contact with Washington for days.
Israel continued operations in southern Lebanon despite Trump's effort to shore up ceasefire.
In economic news, a government report showed that U.S. job openings in April hit their highest in almost two years while hiring and overall separations both eased. Cleveland Fed President Beth Hammack said persistent inflation may require an interest rate hike.
The Dow rose half a percent despite rising geopolitical tensions and elevated energy prices. The tech-heavy Nasdaq Composite finished marginally higher and the S&P 500 inched up 0.1 percent.
European stocks closed higher on Tuesday as investors assessed the latest euro zone inflation data and a strong forecast from STMicroelectronics.
The pan European Stoxx 600 climbed 0.7 percent. The German DAX gained half a percent, France's CAC 40 surged 0.8 percent and the U.K.'s FTSE 100 added 0.3 percent.
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