FX.co ★ Sensex, Nifty Set For Muted Start

The opening trends for Indian shares on Wednesday remain uncertain, due to concerns over U.S. interest rates and escalating military operations in Rafah, casting doubt on a potential ceasefire in Gaza.

Despite Israel's lethal attack on Rafah, the United States is planning to push for a ceasefire deal, though it poorly prioritized the issue. Several high-profile companies, such as Hero MotoCorp, L&T and Tata Power, are preparing to announce their quarterly earnings.

On Tuesday, despite positive cues from the global market, India's benchmark indexes Sensex and Nifty fell by approximately 0.5% and 0.6% respectively. However, the rupee slightly improved, closing at a rate of 83.51 against the dollar.

Asian markets are currently directionless, with gold teetering around $2,300 per ounce and the dollar strengthening due to hawkish comments from the Federal Reserve. Oil prices have dipped further due to increasing U.S. stockpiles.

U.S. stocks plateaued after making initial gains, as investors held out for more clarity on potential Federal Reserve cuts to interest rates. Interest tapered off in the afternoon when Neel Kashkari, President of the Minneapolis Federal Reserve, suggested that interest rates may need to stay the same for an extended period. The Dow managed a meager increase, marking a one-month high over five continuous sessions.

The S&P 500 also saw a marginal increase of 0.1%, marking the fourth straight session of growth, while the tech-centric Nasdaq Composite declined by 0.1%.

European stocks, however, enjoyed their third consecutive gain on Tuesday, buoyed by reassuring bank earnings and strong economic data. The Pan European STOXX 600 index surged by 1.1%, with Germany's DAX up 1.4%, France's CAC 40 increasing by 1%, and the UK's FTSE 100 climbing by 1.2%.