Sensex, Nifty Set For Muted Open

(RTTNews) - Indian shares look set to open on a positive note Wednesday, though volatility cannot be ruled out in the wake of lingering concerns over ongoing foreign fund outflows, signs of slowing corporate earnings growth and geopolitical tensions involving Israel and Hamas.

Israel sent more soldiers to the Gaza area and cancelled leave for troops already there after Hamas delayed the planned hostage release.

Benchmark indexes Sensex and Nifty fell around 1.3 percent each on Tuesday to extend losses for a fifth straight session on fears of a trade war and potential inflation.

The rupee rallied the most in nearly two years, closing up by 63 paise at 86.82 against the dollar, possibly due to an intervention by the Reserve Bank of India (RBI).

Despite the rebound, the rupee remains Asia's worst-performing currency this year, with nearly $9 billion in outflows from Indian equities.

Asian markets were mixed this morning as investors reacted to Federal Reserve Chair Jerome Powell's cautious remarks on interest-rate cuts and awaited the release of U.S. CPI data for additional clues on future monetary policy.

The dollar retreated from recent highs, while gold slipped after climbing to a fresh peak above $2,942 an ounce.

Oil edged lower after gaining Tuesday on signs that U.S. sanctions were hampering Russian crude supplies.

U.S. stocks fluctuated before eventually ending narrowly mixed overnight as bond yields climbed on Powell's remarks signaling a patient path for rate cuts.

In his first appearance before Congress since the inauguration, Fed Chair Powell indicated the central bank was in no rush to adjust its policy stance and described the economy as "strong" and the labor market as "solid."

He avoided any mention of the economic consequences of President Trump's tariff or trade policies.

The tech-heavy Nasdaq Composite slid 0.4 percent, while the S&P 500 finished marginally higher and the Dow rose 0.3 percent.

European stocks ended at a record high on Tuesday as the European Union pledged countermeasures against Trump's tariffs on metals.

The pan European STOXX 600 advanced 0.2 percent. The German DAX gained 0.6 percent, France's CAC 40 added 0.3 percent and the U.K.'s FTSE 100 edged up by 0.1 percent.