Indian shares are set to open higher on Wednesday, tracking strong global cues as investors bet on continued support from the U.S. Federal Reserve, considering the low level of inflation. Fed Chairman Ben Bernanke is due to testify before the Joint Economic Committee of Congress later in the global day.
Meanwhile, focus would be on the rupee after the Indian currency fell 31 paise to a six-month low of 55.42 yesterday, weighed down by weak local equities and sustained dollar demand from importers.
Indian shares ended a choppy session notably lower on Tuesday, mirroring weak global cues. The benchmark 30-share Sensex ended near the day's low at 20,112, down 112 points or 0.56 percent from its previous close, while the broader Nifty index fell by 43 points or 0.7 percent to 6,114.
In corporate news, the health ministry has asked the Drugs Controller General of India to examine comprehensively all the dossiers and drug applications on the basis of which approvals had been granted to Ranbaxy Laboratories in the past, the Business Standard reported, citing sources.
Software services exporter Tech Mahindra reported a 25 percent rise in fourth-quarter consolidated net profit, beating estimates.
Bringing relief for cane industry, the Uttar Pradesh government has allowed all existing as well as new sugar mills to avail of the stamp duty and land registration waivers for purchase of land to build capacity.
JSW Ispat has signed a pact to buy the cement grinding facility of Heidelberg Cement India in Raigad for an undisclosed amount.
Asian Markets
Asian stocks are trading mostly higher, with Japan's Nikkei index rallying more than a percent as investors await the outcome of the Bank of Japan's two-day policy meeting followed by a media briefing by Governor Haruhiko Kuroda.
In economic news, Japan posted a merchandise trade deficit of 879.936 billion yen in April, the Ministry of Finance said - slipping into the red for the ninth consecutive month. The headline figure missed forecasts for a shortfall of 620.6 billion yen.
Another report from the Westpac-Melbourne Institute showed that a measure of Australian consumer confidence slumped by the most in 17 months in May.
U.S. And European Markets
U.S. stocks posted modest gains overnight after home improvement giant Home Depot raised its sales and profit outlook for the year and comments from two Federal Reserve officials suggested the Federal Reserve remains far from winding down its bond-buying program. The Dow rose 0.3 percent, while the tech-heavy Nasdaq and the S&P 500 edged up about 0.2 percent each.
In a speech in Frankfurt, St. Louis Fed President James Bullard said quantitative easing has been the most reliable tool while interest rates have been near zero and the Fed should continue with the program. Bullard still noted that the rate of purchases should be adjusted appropriately in view of incoming data on both real economic performance and inflation.
New York Fed President William Dudley delivered a separate speech in New York questioning whether the adjustment to the pace of purchases would be up or down.
European stocks rose on Tuesday, erasing earlier losses, driven by expectations that the Fed would stick to its $85 billion monthly bond-buying program until next year to bolster the economic recovery. Benchmark indexes in Germany, France, Switzerland and the U.K. rose between 0.2 percent and 0.7 percent.
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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.