Indian shares may struggle for direction at open on Wednesday as U.S. rate concerns lingered and an escalation of the military operation in Rafah fueled uncertainty about a ceasefire in Gaza.
The United States has played down the deadly Israeli assault on Rafah and said it would push for the ceasefire deal.
On the earnings front, Hero MotoCorp, L&T and Tata Power are among the prominent companies that will unveil their quarterly earnings results today.
Benchmark indexes Sensex and Nifty fell around half a percent and 0.6 percent, respectively on Tuesday despite firm cues from global markets. The rupee ended marginally higher at 83.51 against the dollar.
Asian markets lacked a clear direction this morning and gold slipped toward $2,300 per ounce while the dollar was on the front foot on hawkish Fed comments. Oil extended overnight losses on industry data showing rising U.S. stockpiles.
Overnight, U.S. stocks gave up early gains to end on a flat note as investors awaited more clarity on when the Federal Reserve may start cutting interest rates.
Buying interest waned in the afternoon after Minneapolis Federal Reserve President Neel Kashkari suggested interest rates may need to remain at current levels for an \"extended period.\"
The Dow finished marginally higher to extend gains for the fifth consecutive session and reach a one-month high.
The S&P 500 inched up 0.1 percent to close higher for a fourth straight session while the tech-heavy Nasdaq Composite slipped 0.1 percent.
European stocks rose for a third straight session Tuesday on the back on encouraging bank earnings and solid economic data.
The pan European STOXX 600 jumped 1.1 percent. The German DAX rallied 1.4 percent, France\'s CAC 40 added 1 percent and the U.K.\'s FTSE 100 climbed 1.2 percent.