Sensex, Nifty Set To Follow Asian Peers Higher In Cautious Trade

(RTTNews) - Indian shares are seen opening higher on Wednesday after oil prices fell around 3 percent overnight to hit a more than six-month low on worries about the outlook for energy demand and on a potential increase in OPEC supply.

That said, profit taking at higher levels cannot be ruled out as investors await the minutes of the U.S. Federal Reserve's minutes of the July meeting later today for guidance on future rate hikes.

Benchmark indexes Sensex and the Nifty climbed 0.6 percent an 0.7 percent, respectively on Tuesday to settle near four-month highs on optimism about thee India growth story.

Asian markets were seeing modest gains in cautious trade this morning and gold traded flat, while oil edged up slightly to recover from six-month lows after industry data showed a larger-than-expected drop in U.S. oil and gasoline stocks.

U.S. stocks ended mixed overnight, as Walmart and Home Depot posted better-than-expected financial results and a slew of economic data painted a mixed picture of the economy.

Housing starts fell again in July and the New York's Fed's manufacturing gauge eased, while industrial production bounced back on strong manufacturing, separate reports showed.

The Dow rose 0.7 percent to extend gains for a fifth straight session and the S&P 500 edged up 0.2 percent to reach its best closing level in almost four months, while the tech-heavy Nasdaq Composite slipped 0.2 percent.

European stocks rose for a fifth straight session on Tuesday amid hopes central banks will be less aggressive with rate hikes in the coming months.

The pan European Stoxx 600 inched up 0.2 percent. The German DAX gained 0.7 percent, France's CAC 40 index added 0.3 percent and the U.K.'s FTSE 100 inched up 0.4 percent.