Sensex, Nifty Seen Tad Higher At Open

Indian shares may open flat to slightly higher on Wednesday after falling sharply in the previous session.

Range-bound trading is expected due to lack of any major domestic triggers and amid caution ahead of the Federal Reserve’s rate decision, due out later in the day.

Investors are pinning hopes that the Fed’s updated dot plot could offer additional clarity on the timing and pace of potential rate cuts in 2024.

Benchmark indexes Sensex and Nifty fell over percent each on Tuesday while the rupee declined by 12 paise to close at 83.02 against the dollar.

Asian stocks traded mostly higher this morning, with Japanese markets closed for a holiday.

The Japanese yen languished near a four-month low against the dollar, a day after the Bank of Japan ushered in the country’s first-rate hike in 17 years.

Gold held steady while oil prices dipped after two days of gains on supply concerns and signs of stronger demand from the U.S. and China.

U.S. stocks reversed initial losses to end higher overnight as Treasury yields dipped broadly and Nvidia shares edged up for the second day after the company unveiled its new generation of artificial intelligence chips.

In economic releases, February housing starts and building permits data beat expectations.

The Dow jumped 0.8 percent, the S&P 500 gained 0.6 percent to mark a record close and the tech-heavy Nasdaq Composite closed up 0.4 percent.

European stocks closed a tad higher on Tuesday as investors looked ahead to the Fed and BOE policy meetings.

The pan European STOXX 600 advanced 0.3 percent. The German DAX edged up 0.3 percent, the U.K.’s FTSE 100 added 0.2 percent and France’s CAC 40 climbed 0.7 percent.