On Wednesday, Indian stocks are poised for a slight uptick at the opening, reflecting positive trends from global markets and buoyed by expectations of a potential rate cut from the Reserve Bank of India next week.
The benchmark indices, Sensex and Nifty, each advanced approximately 0.7 percent and 0.6 percent respectively on Tuesday, rebounding after two consecutive days of declines.
Meanwhile, the rupee depreciated by 18 paise to 86.52 against the dollar, marking its most significant one-day drop in a fortnight. This occurred amid anticipation for the RBI's monetary policy committee (MPC) meeting in February, following the central bank's decision to enhance liquidity within the banking sector.
In Asian markets, shares in Japan, Australia, and New Zealand showed gains this morning, while many other markets remained closed in observance of the Lunar New Year celebrations.
Gold saw a modest increase, trading above $2,765 per ounce, as investors awaited interest rate decisions from both the Federal Reserve and the European Central Bank.
Oil prices remained relatively stable as concerns over potential disruptions in Libyan oil supply subsided, and the American Petroleum Institute reported a smaller-than-expected rise in weekly U.S. crude inventory.
In the United States, stock markets rallied overnight, cautiously recovering from a recent technology downturn attributed to the unexpected emergence of DeepSeek in the AI sector.
Economic data revealed a 2.2 percent drop in durable goods orders for December, while another report indicated a decline in consumer confidence for the second consecutive month in January.
The tech-focused Nasdaq Composite surged by 2 percent, the S&P 500 increased by 0.9 percent, and the Dow Jones Industrial Average edged up 0.3 percent, as attention shifted towards upcoming earnings from mega-cap companies and the forthcoming Federal Reserve meeting.
In Europe, stocks reached historic heights on Tuesday as global markets shook off a recent technology selloff. The pan-European STOXX 600 climbed 0.4 percent, Germany's DAX rose 0.7 percent, the UK's FTSE 100 gained 0.4 percent, though France's CAC 40 experienced a slight 0.1 percent dip.
