Indian shares are set to open lower on Wednesday, tracking weak Asian cues as investors look ahead to the release of the U.S. Federal Reserve's July meeting minutes for clues as to the Fed's next move at its next policy meeting on September 12-13. Besides global cues, the rupee-dollar movement and the government's response over the latest CAG audit reports on coal block allocations could influence trading sentiment.
India's benchmark indexes Sensex and the broader Nifty rose over a percent each on Tuesday, with strong global cues and a firmer rupee underpinning sentiment. Provisional data released by BSE shows that foreign investors continued to remain net buyers in Indian equities and bought shares worth Rs.141.37 crore yesterday, while domestic financial institutions offloaded shares to the extent of Rs.141.64 crore.
Corporate News
The United Forum of Bank Unions, an umbrella organization of nine unions of employees and officers of PSU banks, has called for a nationwide two-day strike beginning today to protest against the proposed reforms in the banking sector.
The government has no plans to deregulate diesel, cooking gas and kerosene prices by withdrawing subsidy on them, minister of state for petroleum and natural gas RPN Singh said on Tuesday.
Tata Steel has decided to pay about $471 million to redeem its foreign currency convertible bonds maturing on September 5.
Nano, the small car from Tata, needs another push to popularize the brand, Tata Motors Chairman Ratan Tata said.
The Supreme Court has decided to hear on Friday the Union government's application seeking extension of time to commence auction of 122 spectrum licenses, cancelled by the court on February.
Axis Bank has raised another $250 million through the issue of foreign currency senior unsecured notes under the bank's € 2 billion medium term notes program.
Asian Markets
Asian markets are trading mostly lower as caution set in ahead of meetings between eurozone leaders this week to discuss details of the bailout package for Greece. Investors are pinning hopes that a series of bilateral meetings between key eurozone leaders will produce a lasting solution to the region's prolonged sovereign debt crisis.
Meanwhile, data released today showed that Japan posted a larger-than-expected trade deficit in July, with exports falling by their most in six months, hit by the eurozone debt crisis and faltering global growth.
Key benchmark indexes in Australia, China, Japan, Hong Kong and South Korea are declining between 0.3 percent and 1.3 percent.
U.S. And European Markets
U.S. stocks failed to sustain an early upward move overnight, as traders seemed somewhat reluctant to continue buying stocks following recent strength and amid a lack of major U.S. economic data. The Dow slid half a percent, the tech-heavy Nasdaq slipped 0.3 percent and the S&P 500 lost 0.4 percent.
Major European markets ended notably higher on Tuesday, with the U.K.'s FTSE 100, the German DAX and France's CAC 40 closing up between 0.6 percent and 0.9 percent, boosted by reports that the European Central Bank is considering buying bonds from troubled eurozone countries such as Italy and Spain in order to reduce borrowing costs.
A successful debt auction by Spain and reports that China is planning new economic stimulus for the second half of the year also contributed to the positive mood.
Crude
U.S. crude futures ended at a three-month high on Tuesday amid speculation that the European Central Bank is stepping up efforts with further policy measures to tackle the eurozone debt crisis. Crude for September delivery gained $0.71 or 0.7 percent to close at $96.68 a barrel on the New York Mercantile Exchange.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.