(RTTNews) - Indian shares are likely to open higher on Wednesday as investors react to mostly positive global cues and strong industrial output data, which showed India's industrial production grew 7.3 percent in June, the fastest in nearly two years, as against 2.2 percent a year ago and 5.1 percent growth reported for May 2026.
That said, a cautious undertone may prevail amid renewed Middle East tensions and investor anxiety ahead of the U.S. Federal Reserve meeting.
The U.S. and Saudi forces struck Tehran-backed targets in Iran and Tehran fired missiles at U.S. bases, reviving concerns over energy supply disruptions.
Benchmark indexes Sensex and Nifty ended a choppy session marginally lower on Tuesday, even as IT stocks surged amid rising fears over the durability of the AI boom.
The rupee settled 17 paise higher at 95.82 against the dollar, rising for a third straight session as oil prices extended declines amid signals of easing West Asia crisis.
Foreign investors net bought shares worth Rs 755 crore on Tuesday after being net sellers for four trading sessions, while domestic institutional investors net bought shares to the extent of Rs 1,664 crore, as per provisional data on exchanges.
Asian markets were mostly higher this morning as tech stocks rebounded from the previous session's brutal sell-off ahead of big tech earnings.
The dollar stood tall while gold held steady at $4,028 an ounce amid considerably uncertainty concerning the outcome of the Federal Reserve's monetary policy meeting later in the day.
Brent crude futures jumped more than 4 percent toward $88 a barrel, snapping a three-day losing streak as hostilities continued in the Middle East and industry data pointed to continued tightness in global oil supplies.
The U.S. Central Command said Iran had launched multiple ballistic missiles targeting U.S. troops across the Middle East that were successfully intercepted.
Saudi Arabia said it intercepted drones launched from Iraq and a Saudi tanker came under Houthi attack, underlining persistent regional tensions.
Iran reportedly rejected Oman's proposal for shared 50-50 control of the Strait of Hormuz, maintaining that it 'will accept no formula' other than full control of the inbound shipping lane and part of the outbound route.
Overnight, U.S. stocks ended mostly higher following stronger earnings results from the likes of Coca-Cola and Sherwin-Williams.
The Dow surged 1 percent to extend gains for the third straight session and the S&P 500 edged up 0.2 percent as falling crude oil prices helped to pull Treasury yields lower in the bond market.
The tech-heavy Nasdaq Composite slid 0.2 percent amid lingering concerns about Chinese competition and the funding of the AI boom.
European stocks rose on Tuesday as upbeat earnings results offset U.S. President Trump's warning that Washington could target key Iranian infrastructure, including "Kolang Mountain," major bridges, and power plans if negotiations fail.
The pan European Stoxx 600 advanced 0.4 percent. The German DAX rose 0.4 percent, France's CAC 40 gained 0.6 percent and the U.K.'s FTSE 100 added 0.8 percent.
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