Indian benchmark indices Sensex and Nifty are likely to open weak on Wednesday, with GIFT Nifty trading down after Tuesday's sharp rally. A rebound in Asian technology stocks and improving domestic corporate earnings could support sentiment, but rising crude oil prices, persistent FII selling and caution ahead of US inflation data may limit gains.
GIFT Nifty was trading at 22,761 around 8 am, down 90 points, or 0.4 percent. Indian equities surged in the previous session, with the Sensex jumping 1,109.10 points, or 1.54 percent, to 73,033.78 and the Nifty gaining 358.60 points, or 1.60 percent, to 22,721.95. FIIs sold equities worth around Rs 1,300 crore for a 13th consecutive session, while domestic institutions bought shares worth more than Rs 2,439 crore.
Indian equities staged a strong recovery on Tuesday, led by IT stocks, with gains accelerating in the final hour after Finance Minister Nirmala Sitharaman's positive comments on long-term capital gains (LTCG) tax and securities transaction tax (STT) lifted investor sentiment.
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Asian equities edged higher on Wednesday as artificial intelligence-related stocks recovered from recent losses, although elevated crude oil prices and caution ahead of US inflation data tempered gains. Investors are awaiting US inflation figures later in the day for fresh clues on the Federal Reserve's interest-rate outlook.