Indian Shares Seen Opening Higher In Cautious Trade

Indian shares are seen opening higher on Wednesday amid trade optimism after Commerce Minister Piyush Goyal said the ambitious India-EU free trade agreement is likely to be implemented within the 2026 calendar year.

Benchmark indexes Sensex and the Nifty rose around half a percent each on Tuesday after India and the European Union confirmed that they had signed a long-awaited historic trade pact, which will significantly expand the overall trajectory of two-way engagement in a range of sectors and reduce dependence on the unpredictable U.S. relationship.

The rupee closed at 91.72 per dollar, up 0.2 percent from its previous closing level on Friday.

Foreign investors net sold shares worth Rs 3,068 crore on Tuesday, while domestic institutional investors net bought shares to the extent of Rs 9,000 crore, according to provisional exchange data.

Asian markets were mixed this morning, with South Korea’s Kospi average setting a new record after U.S. President Donald Trump said his administration will “work something out” with Seoul over a trade deal.

Japanese markets traded lower as the yen held near three-month highs after rallying nearly 4 percent over the past three sessions on expectations of coordinated yen buying by Tokyo and Washington.

Gold held gains to reach a new peak above $5,200 an ounce and the U.S. dollar grappled with a “crisis of confidence”, struggling near four-year lows after President Trump indicated he’s comfortable with its recent decline.

Amid Trump’s recent threats to take over Greenland and concerns about the Federal Reserve’s independence, the U.S. central bank announces its interest-rate decision later in the day.

Oil held near a four-month high, with WTI crude futures holding above $62 per barrel, following a nearly 3 percent gain in the previous session.

Overnight, U.S. stocks ended mixed despite upbeat earnings news from big-name companies like General Motors and UPS.

Raising concerns about the broader economy and job market, a survey showed U.S. consumer confidence dropped to its lowest level since 2014.

The tech-heavy Nasdaq Composite climbed 0.9 percent on optimism around tech earnings. The S&P 500 rose 0.4 percent to extend gains for a fifth straight session and notch a record closing high on upbeat news from memory chipmakers.

The Dow gave up 0.8 percent as health insurance stocks fell amid concerns over future Medicare payments.

European stocks closed broadly higher on Tuesday as investors reacted to the EU-India trade deal and assessed the potential impact U.S. tariffs might have on global trade.

The pan European Stoxx 600 advanced 0.6 percent. France’s CAC 40 edged up by 0.3 percent and the U.K.’s FTSE 100 added 0.6 percent while the German DAX closed 0.2 percent lower.