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Sensex, Nifty Seen Up On Dovish Fed Bets

Indian shares may open higher on Wednesday amid expectations that a dovish message from the U.S. Federal Reserve later in the day will help improve liquidity inflow in emerging markets like India.

Encouraging earnings from the likes of Nestle India, IDBI Bank and IDFC First Bank may also aid sentiment. Bharti Airtel, Colgate-Palmolive, Dr Reddy's Laboratories, GSK Pharmaceuticals, Maruti Suzuki India and TVS Motor Company are among the prominent companies that will unveil their quarterly earnings later in the day.

Benchmark indexes Sensex and the Nifty jumped around 1.5 percent on Tuesday, while the rupee ended on a steady note at 74.83 against the greenback.

Asian markets are trading mixed this morning and gold hovered near record highs as an impasse in U.S. stimulus negotiations and worsening coronavirus outbreaks in Florida and Texas added to the caution.

Oil prices rose in Asian deals after industry data showed that crude inventories in the United States increased against expectations.

U.S. stocks ended lower overnight as earnings from 3M and McDonald's missed estimates and data showed U.S. consumer confidence ebbed in July amid a flare-up in Covid-19 infections across the country. A delay over the second stimulus package also dented sentiment as the Fed meeting got underway.

The Dow Jones Industrial Average shed 0.8 percent, the tech-heavy Nasdaq Composite fell 1.3 percent and the S&P 500 declined 0.7 percent.

European stocks ended mixed on Tuesday as investors reacted to news indicating some progress on fresh stimulus efforts in the U.S., and reports about lockdowns being reimposed in several countries. The pan European Stoxx 600 gained 0.4 percent.

The German DAX finished marginally lower and France's CAC 40 index dipped 0.2 percent, while the U.K.'s FTSE 100 rose 0.4 percent on reports that the U.K government will extend the Help to Buy property support scheme beyond its December deadline.

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